Dgs presentation at business days_v4 don


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  • Operational excellence is a philosophy of leadership focused on the sustainable improvement of key performance metrics APQC = American Productivity and Quality Center, the World’s largest database of operational excellence benchmarks and best practices We looked at specific industry KPIs and their associated benchmarks to identify the areas where and BPM could drive productivity improvement Many IBM customers have realized benefits that exceed the industry benchmarks
  • BPM is a discipline, which supports long term change in organizational culture, behaviour and performance Let’s use a definition from Gartner as to what BPM is and what is expected from it Visibility, Accountability and Adaptability
  • As you can see, Process Management has evolved over time but the principle of sustainable improvement has been a constant. Where have we come from over the course of ~100 years of effort to become more efficient? What are some of the challenge we face as we go forward?
  • In my experience, most companies at the beginning of their BPM journey have challenges that look like this. How do we get these groups to work more effectively together? The business wants to go faster but may lack an end-to-end view of their processes. IT wants to go faster, but a greater % of the work needed to transform and improve business processes is their to do while at the same time they are resource constrained
  • How do we make people more productive, when for processes where humans are involved will become less orchestrated, less repeatable / able to automate? This seems like a step backward but not when visibility and SLA-based measurement is the principal actor, driving operational excellence, and with BPM as an enabling tool. The processes, then, where humans exist in a few years will be those where the rules that define the entirety of the flow cannot be defined in advance. But milestones can still be defined, even for the crude case-type processes today. Participants will be able to measure their work against these milestones based on the built-in visibility of processes, and their decisions and judgments will guide the flows.
  • BPM can make both groups, business and IT work more productively. BPM shifts some of the responsibility and workload from IT to the business. In return, IT resources are freed up for other valuable work (integration, services, data) and the business manages processes, the delivery cycle and prioritization of process improvements based on their understanding of the needs of its customers
  • To be successful with BPM as an enabler of operational excellence, everyone in the organization needs to be on board, from the CEO on down BPM should be the center piece of an organization’s strategy to: manage and execute change in an increasingly hypercompetitive environment – to adapt, thrive and survive efficiently align the organization with the customers’ wants and needs continuously improve processes – seeking process optimization by defining, measuring and improving your process Benefits of a BPM-led effort toward operational excellence include: Improve operational efficiency Reduce operational Risk Improve Service Quality - KPIs/ SLAs to the internal and external clients Improve Agility Holistic approach to the process Extend value from business solutions
  • POINTS: 1. ‘To win the lottery, you must first buy a ticket’ 2. It ’s important not to lose sight of the vision, while ensuring small successes to build on. It is not difficult to succeed in BPM but very easy to fail . 3. Projects must realize benefits to be sustainable
  • Dgs presentation at business days_v4 don

    1. 1. May 23, 2013Business Days RomaniaDon Seymour – IBM Sales & Solutions – CEEA briefing on- Operational Excellence through BPM
    2. 2. © 2013 IBM CorporationConfidentialIndustry KPI Aggregate Industry Benchmarks Key Client References & ExperiencesIncrease Revenue PerCustomerIncrease revenue from newproducts or channelsImprove combined ratio(better rating and riskselection) Best in class cross-sell/up-sellrate is 17%; typical is 10% 22% of sales are due toproducts & services launchedin the past year Rule changes droppedfrom 5 months to oneweek 40% increase in newbusiness quotes 50% time to marketimprovementImprove CustomerAcquisition and RetentionImprove effectiveness oftargeted campaignsImprove targeted renewalsImprove gross writtenpremiumsIncrease customer referrals Best in class market share is20% (80thpercentile)compared to median 14% Typical 3-year churn rate is28% compared to best in classat 18% Typical customer satisfactionis 95.5% compared to best inclass at 98% Best in class referral rate at95% Reduction in time to issuenew policy by 62% Targeted marketing toachieve 60% adoption ratefor advisors 98% Reduction in dataanalysis time for tailoredmarketing Reduced costs by 30% whilemaintaining new customerconversion rates2Operational excellence| Industry Key Performance Indicatorswhere IBM BPM has delivered expected results
    3. 3. © 2013 IBM CorporationConfidentialDefinitions3Expectations AttributesBPM | is expected to drive organizations towards operationalexcellenceVisibilityAccountabilityAdaptabilityBPM treatsprocesses asassets thatcontribute toenterpriseperformanceand driveoperationalexcellence Explicit process models To all processparticipants All phases of theprocess life cycle Business has ownership No Responsibility gaps Clear line-of-sight tometrics and outcomes Business drivesdelivery cycles Continuous processimprovementmentalitySource: Gartner
    4. 4. © 2013 IBM CorporationConfidentialBackground| Process Management - A brief history19201930194019501960197019801990200020072012What’s the nextchallenge? Source: Gartner4
    5. 5. © 2013 IBM CorporationConfidential•Pressure toautomate processes•Aggressive time-to-market objectives•Application-mindsetvs. end-to-endprocess mindsetBusiness•Long development•High maintenancecosts•Little reuse•Outdated platformsIT5Typical Challenges today | faced by many companies5
    6. 6. © 2013 IBM CorporationConfidentialIndividual ProcessesProcessRepeatabilityNon-repeatable processesHighly repeatable processesSomewhat repeatable processesLooking ahead | most processes will continue to require humaninvolvement6
    7. 7. © 2013 IBM CorporationConfidentialBusiness ITBPM is thebridgebetweenbusiness andIT7BPM | brings the power of technology to business people• Business Processes aremanaged by businesspeople• Business betterunderstands the needsof its customers• Business should beenabled to makeimprovements• Some improvementscan be made withoutinvolving IT• Business Processesare supported byvarious applicationsrequiring theintegration ofservices and data.• Processes rangefrom repetitive,highly automatedand very complex tovery simpleinteractions withspreadsheets likeExcel sent by email7
    8. 8. © 2013 IBM CorporationConfidentialNew products andservices generatingnew sources ofrevenueNew models thatenable theorganization todifferentiate andexplore new marketsBetter processesenable more agilityin light of changes incompetitive market8Business – ITcollaboration8Innovation tostrengthen revenueInitiatives to increaseefficiencyOperational excellence through BPM| requires sponsorship by theCEO and CIO internally, empowering business and technical teams toadopt a ‘continuous change’ mindset
    9. 9. © 2013 IBM CorporationConfidential9 Start Doing Think Big, Start Small, Scale Fast Cultivate Business-IT Collaboration Add Capabilities as Needed Manage Your Total Cost of OwnershipGet started| Successful BPM journeys have these five attributes incommon – the most important of which is: to begin
    10. 10. © 2013 IBM CorporationConfidential10Thank you.Don Seymour don.seymour@cz.ibm.com