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Help #SME becoming #digital

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Help Small and Medium Enterprises becoming #digital

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Help #SME becoming #digital

  1. 1. Help SME becoming #digital Alexander SAMARIN SME – Small and Medium Enterprise
  2. 2. • The realities of the new world: – speed – immediately – scale – planet-wide – variations – more opportunities in more locations with more partners and for more customers – competition – with everyone (any may be attacked by everyone) – transparency – be ready to justify everything • Only the digital (neither physical nor analogue) media can handle this unprecedented complexity • Digital relates to everything: – products, production, design, organisation of work, customer experience, compliance, security, etc. © A. Samarin 2015 Help SME becoming #digital v1 2 Why becoming digital?
  3. 3. • Business artefacts are available in digital formats (formal and executable) • Business artefacts can be moved between digital, analog and physical medias • Digital is the master media for business artefacts • Everyone “understands” the digital formats for business • Enterprise can transmit, protect, validate, enrich, interpret and manipulate digital business artefacts at their whole life-cycle • Enterprise can generate new knowledge from digital business artefacts • Enterprise knows all the dependencies between its digital business artefacts • Enterprise can adapt digital business artefacts for a particular customer • People can delegate to "things" some routine activities with their artefacts • With the progress of #IoT, "things" become more capable actors within digital business processes © A. Samarin 2015 Help SME becoming #digital v1 3 #digital manifesto
  4. 4. • Weak enterprise-wide units • Lack of free resources & Lack of internal expertise • Many modern technologies and tools on the market • In addition to “faster, cheaper, better” is it mandatory to become digital, ecological and societal • Licences, consultants and external development are very expensive • In-house development is very slow • Improbable to start big and risky projects • A lot of legacy © A. Samarin 2015 Help SME becoming #digital v1 4 Barriers in SME to become #digital
  5. 5. • Which business artefact is the most important one for becoming #digital? – products – services – capabilities – functions – organisation units – information – processes – something else • Hint: try to derive from your choice all other artefacts © A. Samarin 2015 Help SME becoming #digital v1 5 Use the points of most leverage to enable such a transformation
  6. 6. • a model and communication tool during the design period • input for project evaluation (including impact analysis) • input for project planning and execution • an executable program for the coordination of work • documentation for all staff members • a “single source of truth” for operating control and monitoring • a framework for internal control and security enhancement • the basis for management decisions © A. Samarin 2015 Help SME becoming #digital v1 6 Properly done, a business process serves many purposes
  7. 7. • The goal – how to climb up with the pace of business and without drastically changing diagrams, tools, practices and architecture Ladder of business process practices © A. Samarin 2015 Help SME becoming #digital v1 7 Implicit Illustrative Explicit Executable System-of-processes Fully digital Everyone understands common business processes in the same way If there are separation of labour or separation of work then there are business processes Each person understands common business processes differently Coordination via business processes is carried out objectively Enterprise is a system-of-processes All business artefacts are digital- first
  8. 8. • Business processes are described somewhere long time ago • Business processes are embedded into applications • People understand business processes differently • Example: To “push” forward a process instance (e.g. my request for procurement), one has to know – what is the current activity – who is doing this activity now – be a friend with this person – call him/her, re-explain all details and re-send several documents • Different units see end-to-end processes differently © A. Samarin 2015 Help SME becoming #digital v1 8 Implicit business processes
  9. 9. © A. Samarin 2015 Help SME becoming #digital v1 9 Illustrative are not enough ….. Usage of business processes Illustrative model As a communication tool Informal Input for project planning and execution Expert agreed guess Coordination of work Subject to personal interpretations Corporate knowledge Usually disconnected from the reality Source for operating control Post factum Framework for internal control Based on willingness Framework for information security Usually not connected Basis for management decisions Subjective and delayed • Essential techniques: – common notation – hierarchy of processes • Essential concerns: – Are process diagrams understandable for everyone? – Quickly understandable?
  10. 10. • Qualitative technique to demonstrate business advantages • Use of BPM-suite tools to demonstrate IT advantages • Example of a quick consultancy – Concern: faster + cheaper + better delivery of business solutions – Task: demonstrate agility in prototyping, integration and evolutions – Action: use 4 various tools (BPM-suite) to prototype – Result: BPM was accepted to modernise an in-house ERP © A. Samarin 2015 Help SME becoming #digital v1 10 How to justify to become better then illustrative processes?
  11. 11. • Essential techniques: – modern modelling practices – process patterns – simulation © A. Samarin 2015 Help SME becoming #digital v1 11 Why explicit? Usage of business processes Explicit model As a communication tool Semi-formal Input for project planning and execution Expert agreed about SOA Coordination of work Commonly agreed and subject to personal interpretations Documentation for staff What we see is what you we should do Source for operating control Post factum Framework for internal control Based on willingness Framework for information security Usually not connected Basis for management decisions Subjective and delayed
  12. 12. • Incremental transformation to #digital (explicit and executable) processes – see http://improving-bpm- systems.blogspot.com/2015/06/incremental- transformation-to-digital.html • BPM and BPMN training courses • Proven process modelling procedure • Many practical process patterns © A. Samarin 2015 Help SME becoming #digital v1 12 How to advance to explicit business processes?
  13. 13. © A. Samarin 2015 Help SME becoming #digital v1 13 Why executable? Usage of business processes Executable model As a communication tool Formal Input for project planning and execution SOA ready - services and other artefacts Coordination of work Commonly agreed and objectively re-inforced Documentation for staff What we see is what you we must do Source for operating control Objective and immediate Framework for internal control Based on obligations Framework for information security Dynamic and proactive Basis for management decisions Objective and immediate • Essential techniques: – BPM reference model – BPM suite – automation – optimisation loop
  14. 14. • Quantitative technique to demonstrate the effect of automation • BPM-suite tool selection for your needs • Proven implementation practices, BPM COE, knowledge transfer, rapid prototyping • An example © A. Samarin 2015 Help SME becoming #digital v1 14 How to advance to executable business processes?
  15. 15. • See http://improving-bpm- systems.blogspot.ch/2014/03/enterprise-as-system-of- processes.html • Five levels of coordination with the system-of-processes 1. business activities 2. process fragments / patterns 3. classic business processes (workflows) 4. cluster of business processes (around functional processes) 5. value-streams (or end-to-end business processes) © A. Samarin 2015 Help SME becoming #digital v1 15 Why system of processes
  16. 16. • Manage life-cycle of all enterprise artefacts • Transform process improvement into business improvement (BPM is already 50 % of EA) • SOA/ESB/API and microservices-based application architecture – see http://improving-bpm- systems.blogspot.ch/2015/04/architecting-cloud-friendly- application.html © A. Samarin 2015 Help SME becoming #digital v1 16 How to advance to enterprise-as-a- system-of-processes? Many practices become process- centric: • Governance • Project management • Risk management • Records management • ECM and knowledge management • Enterprise architecture
  17. 17. © A. Samarin 2015 Help SME becoming #digital v1 17 Iceberg of processes +Governance as a process
  18. 18. • Each SME has its own way – for example, - http://improving-bpm- systems.blogspot.com/2015/06/an-example-of- architecting-digital.html © A. Samarin 2015 Help SME becoming #digital v1 18 How to advance to fully digital?
  19. 19. • Enterprise functioning can be considered as business activity flows spanning the applications, employees, customers and partners within and beyond the boundaries of the enterprise • Business activity is a unit of work • Business process is an explicitly-defined coordination for guiding the purposeful enactment of business activities – Note: Business process is a plan of work with some variations and its execution with some necessary corrections © A. Samarin 2015 Help SME becoming #digital v1 19 Business process definitions
  20. 20. • Enterprise functioning can be considered as business activity flows spanning the applications, employees, customers and partners within and beyond the boundaries of the enterprise • Business activity is a unit of work • Business process is an explicitly-defined coordination for guiding the purposeful enactment of business activities – Note: Business process is a plan of work with some variations and its execution with some necessary corrections © A. Samarin 2015 Help SME becoming #digital v1 20 Business process definitions
  21. 21. • Business Process Management (BPM) is a process- based management discipline involving any logical combination of – modeling/planning, – automation/implementation, – execution, – control, – measurement and – optimization of business processes – Process-based management discipline is a management discipline which exploit the concept of “business processes” – Management discipline is a discipline for the better management of the enterprise functioning in support of the enterprise goals © A. Samarin 2015 Help SME becoming #digital v1 21 BPM definitions
  22. 22. • QUESTIONS? • Personal website: http://www.samarin.biz • Blog http://improving-bpm-systems.blogspot.com • LinkedIn: http://www.linkedin.com/in/alexandersamarin • E-mail: alexandre.samarine@gmail.com • Twitter: @samarin • Mobile: +41 76 573 40 61 • Book: www.samarin.biz/book Help SME becoming #digital v1 22 Thanks © A. Samarin 2015

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