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Enterprise BPM Framework

The document discusses the importance of Business Process Management (BPM) in organizations, outlining its role in improving agility, operational performance, and revenue through structured approaches and governance. It presents a BPM maturity model, detailing levels from initial processes to optimizing processes, emphasizing the correlation between maturity and organizational benefits such as increased sales and operational income. Furthermore, it explores fundamental BPM frameworks for strategy, design, implementation, and controlling business processes while addressing the significance of aligning business objectives with process structures.

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www.ids-scheer.com Enterprise BPM framework IDS Scheer Nederland Frank Luyckx, Enterprise BPM solution champ
Agenda ARIS BPM framework Enterprise BPM framework 22 11 ROI BPM framework33 © IDS Scheer AG www.ids-scheer.com
© IDS Scheer AG www.ids-scheer.com
An organization should be a school of fish To survive they have to react to changes quickly © IDS Scheer AG www.ids-scheer.com To survive they have to react to changes quickly Gartner : BPM is a structured approach employing methods, policies, metrics, management practices and software tools to measure, synchronize and continuously optimize the organization's activities and processes." "BPM governance is a management practice that provides for governance of a business's process environment toward the goal of improving agility and operational performance and revenue.
Misalignment …. • Personal agendas • Politicking • No agreed routemap • No consistent measures TQM Continuous Improvement Customer Focus Productivity Empowerment Too many independent initiatives Just in time reskilling sales force effectiveness sales force effectiveness EDI No Clear Leadership Disillusioned Management © IDS Scheer AG www.ids-scheer.com • No consistent measures • No stretch targets • Shop floor disengaged
Business 4 Driving forces within an organisation How can I manage my business results © IDS Scheer AG www.ids-scheer.com OrganizationProcess How can I manage my business processes How can I manage my organisation How can I control my business results
4 Phases of the Process Life Cycle Management © IDS Scheer AG www.ids-scheer.com Strategy = Company Objectives & Business strategy Design = Functional design & Business analysis Implement = Solution development & Deployment preparation Controlling = Operational environment & Daily Maintenance
IDS Business Process Maturity framework to reach Business agility Strategy Design Implementation Controlling Business Transformation Management Business Communications ManagementBusiness Strategy Business Management BPM Configuration Management BPM Support ManagementBPM Program Management BPM Design We want a new printer in the home market segment What are the specifications and logistical requirements ? How should I change the distribution centers and logistical concepts? Where can I find information of the new printer and my new responsibilities ? Business Management © IDS Scheer AG www.ids-scheer.com BPM Change management BPM GovernanceBPM Change Program BPM Organizational Design BPM Knowledge Management BPM Objectives ManagementBPM Financial Management BPM Quality Management What are the objectives for the organisation ? How should I design the new organisation? Does the organisation accept the new organisation structure ? How can I manage the organisational standards and responsibilities What processes & projects do I require ? How should the process design look like ? How should I confige the ICT applications and processes ? How can I daily support the ICT applications and processes ? What is the ROI and process cost of this new printer ? How can I improve the printers and logistical infrastructure? Does everybody understand the printer, applications & processes ? Does the new printer and BPM reaches the objectives ? Process Management Organisation Management Management Control
BPM stakeholders BPMBPM ImplemImplemBPM DesignBPM DesignBPM StrategyBPM Strategy BPM ControlBPM Control JurgenJurgen SattlerSattler CEOCEO FrankFrank VolmerVolmer Paul BijsterPaul Bijster Business Development Manager SteveSteve MCALLISTERMCALLISTER Business Planner JohannaJohanna FeldmanFeldman IT GunnarGunnar OLSSONOLSSON IT System Carl BRAUNCarl BRAUN Head of Service Center RobertRobert THOMSONTHOMSON Business Business Management Process © IDS Scheer AG www.ids-scheer.com VolmerVolmer OperationsOperations Manager ClausClaus PettersonPetterson HRM manager MonikaMonika BAUDISCHBAUDISCH Financial services PeterPeter SONNTAGSONNTAG Global Business Owner PeterPeter MAYMAY Business Process Analyst IT Architect EtienneEtienne DUCRETDUCRET Knowledge Manager LindaLinda ROSENFELDROSENFELD Organisational Change Manager MarcusMarcus ANDERSENANDERSEN Project Manager, Operational Excellence WolfgangWolfgang BECKERBECKER Head of BPM Organization IT System Support Manager Business Architect Process Management Organisation Management Management Control
Strategy Design Implementation Controlling BusinessTransformation CommunicationsManagementBusinessStrategy BusinessManagement BPMConfiguration Management BPM SupportManagementBPMProgram Management BPMDesign BPMproject portfolio Corporate processmodel BPMexecution platform BPMsystem support Businessanalysis Balanced score Card Products& servicesanalysis Busrequirementsmngmt Transformation management Continiousimprovements Communication platform Information management Business Management Process BPM Governance Framework with BPM projects © IDS Scheer AG www.ids-scheer.com BPMChange management BPM GovernanceBPMChange Program BPMOrganizational Design BPMKnowledge Management BPMObjectives ManagementBPM Financial Management BPMQuality Management BPMstakeholdersobjectives HRM organisational analysis BPMorganisation design BPMprocess owners BPMchange management Authorization concept BPMstandards& methods BPMescalation management BPMproject standards Corporate processmodel BPMarchitecture BPMexecution platform Documentation &testing BPMimpactanalysis Processcosting analysis BPMROI calculation Sixsigma projects BPMqualityanalysis BPMcontent management BPMtraining management BPMobjectivesanalysis BPMSLA management Process Management Organisation Management Management Control
A higher BPM maturity level generates benefits for the organisation Alignment , Harmonisation Rationalisation of: Products, Processes, Policies, Projects Platforms, Procedures, © IDS Scheer AG www.ids-scheer.com As each bird flaps its wings it creates an uplift for the bird following. By flying in a V formation the whole flock adds 71% of the flying range than if each bird were to fly alone. Procedures, Planning, Power, Performance, Politics, …… People
BPM Maturity Levels to measure alignment (CMMI, OMG) Integrated E2E processes and E2E process organization across the 5 BPM domains E2E process analysis of both the E2E processes and products Networked E2E processes with business partners Strategical market agility and proactive improvements enabled by piloting innovative new ideas and technologies 3 Standardized 4 Predictable BPM domain integration requires discipline by the complete organization Success depends on BPM Build a trusted relationship with your business partners ( suppliers and customers ) 5 Optimizing © IDS Scheer AG www.ids-scheer.com Individual process flows. Few activities are described. Individual planning motivation, efforts and heroics Unit process discipline is in place to repeat processes and reduce rework. Basic project management to track costs, schedule and functionality. Corporate E2E processes are standardized by an accepted methodology. BPM Competence Center monitors BPM projects - BPM tools - E2E process standards and products 1 Initial 2 Managed Success depends on employee competencies Success depends on management competencies Success depends on BPM competencies
Concepts IDS BPM Maturity Model Maturity levels describes the levels that an organization moves through as it evolves from an immature organization without any process discipline to a mature organization where all processes are measured, managed and consistently improved. 5 Maturity levels Initial processes Managed processes Standard processes Predictable processes Optimizing processes BPM Tools can support an organization to reach a higher BPM maturity level © IDS Scheer AG www.ids-scheer.com A BPM Process area describes a cluster of related BPM processes within the organization. 16 BPM Process Area’s
BPM Maturity Index BPMMaturityLevel 2,4 2,8 2,0 2,3 2,3 BusinessStrategyManagement 2 BusinessManagement 2 BusinessTransformation 4 BusinessCommunicationManagement 1 BPMProgramManagement 4 BPMDesign 1 BPMConfigurationManagement 2 BPMSupportManagement 2 BPMChangeProgram 2 BPMOrganizationalDesign 2 BPMChangeManagement 1 BPMGovernance 4 BPMCostManagement 3 BPMQualityManagement 3 BPMKnowledgeManagement 2 BPMObjectivesManagement 2 BPMBPMBPMBPM Strategy Design Implementation Controlling © IDS Scheer AG www.ids-scheer.com The BPM Maturity Index determines whether the management team should start projects for: 1. The Formalisation & Management of the processes and procedures 2. The Standarisation & Alignment of the processes and procedures 3. The Optimalisation & Integration of the processes and procedures 4. The Innovation & Market Agility of the processes and procedures BPMCostManagement 3 BPMQualityManagement 3 BPMKnowledgeManagement 2 BPMObjectivesManagement 2
Experiences of more than 700 companies with BPM maturity models (INK, EFQM) The average results of the use of BPM maturity concepts are : Growth of Sales (37-77%) Growth operating income (18-48%) Better return on sales (4,4%-8%) © IDS Scheer AG www.ids-scheer.com More focus on the alignment of the business strategy and the processes Structure for operational management reporting and annual reporting Governance Structure for managing BPM within organisations
Agenda ARIS BPM framework Enterprise BPM framework 22 11 ROI BPM framework33 © IDS Scheer AG www.ids-scheer.com
Project Preperation As-Is Models Detailed Process Models (Top/down) Blueprint RealisationRealisation FinalFinal PreparationPreparation Process Scope E2E Scope E2E Models Functional Unit Test Integration Tests User Acceptance Test Regression Tests Go LiveGo Live and Supportand Support Next Roll Out Support & Improvements Impact assessment BPM in een Project System Documentation Scope Models System Scope Org. Scope Interface Map Business Roles SAP Org. Model Test Authorisation Matrix Tests Change Request Management & Updated Process Models (Project Based) Change Request Mgnt (Governance Based) Publish Approved Blueprint Models Develop End User Training End User Training Portal Concept Business profiles training Change management Portal / content Communication User Documentation
BPM ControllingBPM ControllingBPM ImplementationBPM ImplementationBPM DesignBPM DesignBPM StrategyBPM Strategy BPMBPM CommunicationCommunication ManagementManagement BPMBPM SupportSupport ManagementManagement BPM configurationBPM configuration Management &Management & TestingTesting ProcessesProcesses & project& project ManagementManagement configurable start page with optionally • a start page image • a start model with clickable buttons • main menu functions views on database are configured in start model view on processes (navigation via process assignment tree) view on organization (navigation via assignment tree of organograms) overview of documents (navigation via structured document list) overview of files (navigation via flat list of files) Does bank master already exist? Bankm aster does NOT exist Bank master exists Change of bank m aster required? Change of bank m aster required Change of bank master NOT required Deletion of bank m aster required? Deletion of bank master required Deletion of bank master NOT required Bank chain update required? Create bank master C hange bank master Delete bank master Create Bank Change Bank Set Flag to Delete Bank Request for update approved SA PR/3 SA PR/3 Business Scenario Update bank master data ARIS EPC ARIS Test Scenarios TestDirector TT Test case Journal approved Save journal as complete transaction Display saved journal Journal saved ascomplete transaction Nochanges necessary Test case 22 Test case 22 TT Test case Journal approved Save journal as complete transaction Display saved journal Journal saved ascomplete transaction Nochanges necessary Test case 22 Test case 22 TT Test case Journal approved Save journal as complete transaction Display saved journal Journal saved ascomplete transaction Nochanges necessary Test case 22 Test case 22 TT Test case Save journal as complete transaction Display saved journal Journal saved ascomplete transaction Nochanges necessary Test case 22 Test case 22 TT Test case Save journal as complete transaction Display saved journal Journal saved ascomplete transaction Nochanges necessary Test case 22 Test case 22 TT Test case Save journal as complete transaction Display saved journal Journal saved ascomplete transaction Nochanges necessary Test case 22 Test case 22 TT Test case Save journalas complete transaction Display saved journal Journalsaved as complete transaction No changes necessary Test case 22 Test case 22 TT Test case Save journalas complete transaction Display saved journal Journalsaved as complete transaction No changes necessary Test case 22 Test case 22 TT Test case Save journalas complete transaction Display saved journal Journalsaved as complete transaction No changes necessary Test case 22 Test case 22 Business Process Management platform based on ARIS © IDS Scheer AG www.ids-scheer.com ManagementManagement OrganizationOrganization StandardsStandards & BPO’s& BPO’s TestingTesting BPM KnowledgeBPM Knowledge Management &Management & TrainingTraining ManagementManagement BPMBPM GovernanceGovernance ManagementManagement BPM ChangeBPM Change ManagementManagement && AuthorizationsAuthorizations Sales Manager Germany Sales Representative Germany Sales Manager Germany Technical Specialist Germany Sales Representative Americas Employee Sales Sales Manager Sales Manager Americas Technical Specialist Americas Employee Sales Germany Employee Sales Americas RoleRole PositionPosition From ARIS process model to requ.Spec. From portalto e-learning offers From SAP application to ARIS process model From ARIS Process model to SAP applocation From portal to FAQlists From portal to ARIS process world From portal to requirements specification Bank chain update required Bank chain update NOT required Create/change bankdata Readyto inform user of update to bank master data Maintain bank chains for partner SAP R/3 SAP R/3 Journal approved Journal approved Journal approved Journal approved Journal approved Journal approved
BPM Governance Framework with BPM projects BPM ControllingBPM ControllingBPM ImplementationBPM ImplementationBPM DesignBPM DesignBPM StrategyBPM Strategy BPMBPM CommunicationCommunication ManagementManagement BPMBPM SupportSupport ManagementManagement BPM programBPM program managementmanagement Business &Business & ProductProduct ManagementManagement BusinessBusiness Strategy &Strategy & BPM objectivesBPM objectives BusinessBusiness TransformationTransformation ManagementManagement BPM Testing &BPM Testing & ConfigurationConfiguration ManagementManagement ProcessesProcesses DesignDesign ManagementManagement Innovation & learning Financial Internal Business Perspective How do we look to our stockholders? At what must we excel? Can we continue to improve and create value? How do our customers see us? Strategy BusinessBusiness ModelModel ChangesChanges BusinessBusiness ProcessesProcesses ChangesChanges BusinessBusiness ApplicationsApplications ChangesChanges New ServicesNew Services New ProductsNew Products AcquisitionAcquisition New Sales Channels New Sales Channels New MarketsNew Markets New PartnersNew Partners . . .. . . New ProcessesNew Processes New Process Flows New Process Flows New Departments New Departments New Business Functions New Business Functions New UPI‘sNew UPI‘s New Responsibilities New Responsibilities New Information Access New Information Access ModificationsModifications CompositionComposition . . .. . . IntegrationIntegrationExtensionsExtensions StrategyStrategy BPMBPM ITIT SAPERP UVA proj Fase 1 Fase 2 Week / Maand Corporate Process Model level 1, 2 en 3 BPM inkoop (level 4) Implementatie SSM en synchronisatie ARIS Projecten adminstratie Finance, HRM, Vastgoed Studenten adminstratie Process verbeteringen / Faculteit validatie (CM) 13 14 15 16 17 18 19 20 21 22 Fase 3 BPM Opzetten BPM governance 23 24 25 26 27 28 29 Opzetten BPM conventies Fase 4 BPMNBPMN ARIS Repository Event-Driven Process ChainWSDL «interface» «wsdlPortType» http://creditsales.soa.umg.ids.com/::CreditSalesService «wsdlOperation»+calculateCreditIncreaseProposal(incalculateCreditIncreaseProposa... «wsdlOperation»+changeCreditApplication(inchangeCreditApplicationRequest:Credit... «wsdlOperation»+checkCustomerPaymentCapacity(incheckCustomerPaymentCapa... «reside»«reside»«reside» «wsdlService» http://creditsales.soa.umg.ids.com/::CreditSalesService WSDL «interface» «wsdlPortType» http://creditsales.soa.umg.ids.com/::CreditSalesService «wsdlOperation»+calculateCreditIncreaseProposal(incalculateCreditIncreaseProposa... «wsdlOperation»+changeCreditApplication(inchangeCreditApplicationRequest:Credit... «wsdlOperation»+checkCustomerPaymentCapacity(incheckCustomerPaymentCapa... «reside»«reside»«reside» «wsdlService» http://creditsales.soa.umg.ids.com/::CreditSalesService BPEL Process Execution BPELBPEL Process ExecutionProcess ExecutionProcess Execution «busi nessClass» Movie ti tle:String duration:Integer «busi nessClass» Show begi nni ng:Date =null numberOfSoldTickets:Integer schedule(i nbegi nning:Date) cancel() movie():Movi e{query} begi nni ng():Date {query} avai labl eTi ckets():Integer{query} createReservation(in requestedTickets:Integer):Reservation cancelReservations() addReservation(i nreservation:Reservati on) «busi nessClass» MovieTheater name:String shows(i nmovi e:Movie):Show[*]{query} «busi nessClass» Theater number:Integer seatCount:Integer shows(inmovie:Movi e):Show[*]{query} shows(inmovie:Movi e,i nbegi nning:Date):Show{query} 1 1..*1 1..* 1 * 1 * *1 *1 «busi nessClass» Reservation numberOfReservedTickets:Integer reservationCode:Integer «create»create(i nshow:Show,innumberOfTickets:Integer):Reservati on * 1 * 1 «busi nessClass» Ticket * 1* 1 * * * * UML Software Engineering «busi nessClass» Movie ti tle:String duration:Integer «busi nessClass» Show begi nni ng:Date =null numberOfSoldTickets:Integer schedule(i nbegi nning:Date) cancel() movie():Movi e{query} begi nni ng():Date {query} avai labl eTi ckets():Integer{query} createReservation(in requestedTickets:Integer):Reservation cancelReservations() addReservation(i nreservation:Reservati on) «busi nessClass» MovieTheater name:String shows(i nmovi e:Movie):Show[*]{query} «busi nessClass» Theater number:Integer seatCount:Integer shows(inmovie:Movi e):Show[*]{query} shows(inmovie:Movi e,i nbegi nning:Date):Show{query} 1 1..*1 1..* 1 * 1 * *1 *1 «busi nessClass» Reservation numberOfReservedTickets:Integer reservationCode:Integer «create»create(i nshow:Show,innumberOfTickets:Integer):Reservati on * 1 * 1 «busi nessClass» Ticket * 1* 1 * * * * UML «busi nessClass» Movie ti tle:String duration:Integer «busi nessClass» Show begi nni ng:Date =null numberOfSoldTickets:Integer schedule(i nbegi nning:Date) cancel() movie():Movi e{query} begi nni ng():Date {query} avai labl eTi ckets():Integer{query} createReservation(in requestedTickets:Integer):Reservation cancelReservations() addReservation(i nreservation:Reservati on) «busi nessClass» MovieTheater name:String shows(i nmovi e:Movie):Show[*]{query} «busi nessClass» Theater number:Integer seatCount:Integer shows(inmovie:Movi e):Show[*]{query} shows(inmovie:Movi e,i nbegi nning:Date):Show{query} 1 1..*1 1..* 1 * 1 * *1 *1 «busi nessClass» Reservation numberOfReservedTickets:Integer reservationCode:Integer «create»create(i nshow:Show,innumberOfTickets:Integer):Reservati on * 1 * 1 «busi nessClass» Ticket * 1* 1 * * * * UML Software EngineeringSoftware Engineering Rules Rules Execution Rules Rules Execution RulesRulesRules Rules ExecutionRules Execution BANF_Update BANF_IF BANF_Update BANF_IF BANF_Update BANF_IF BANF_Update BANF_IF BANF_Update BANF_IF BANF_Update BANF_IF configurable start page with optionally • a start page image • a start model with clickable buttons • main menu functions views on database are configured in start model view on processes (navigation via process assignment tree) view on organization (navigation via assignment tree of organograms) overview of documents (navigation via structured document list) overview of files (navigation via flat list of files) End users check check update update create model create model transfer transfer approved approved Development database Productiondatabase Archive database released released check check approved approved transfer transfer check check check check Review database RCM – workflow Modelling RCM-scripts Database Synchronisation and Web publication 1 6a 5 4 32 6b 8 10 © IDS Scheer AG www.ids-scheer.com BPM ChangeBPM Change ProgramProgram ManagementManagement BPM KPI’sBPM KPI’s ManagementManagement & SLA’s& SLA’s BPMBPM FinancialFinancial ManagementManagement OrganizationOrganization StandardsStandards & Ownership& Ownership QA ManagementQA Management for BPMfor BPM improvementsimprovements Control Monitoring the new process Define ARIS Process Models, Objectives, Project description Analyse Calculations & comparisons of historical data Improve What if scenarios and definition of tasks Measure ARIS Business Optimizer Scenarios Control Monitoring the new process Define ARIS Process Models, Objectives, Project description Analyse Calculations & comparisons of historical data Improve What if scenarios and definition of tasks Measure ARIS Business Optimizer Scenarios ManagementManagement BPM trainingBPM training & knowledge& knowledge ManagementManagement ManagementManagement BPMBPM GovernanceGovernance ManagementManagement ChangeChange ManagementManagement && AuthorizationsAuthorizations Structural Relations between Process Management RolesStructural Relations between Process Management Roles Process Coordinator (Country 2) Head of Group Process Mgmt Head of Group Process Mgmt Process Owner (e.g. Retail Loan) … Process Coordinator (Retail Loan) Process Owner (e.g. …) Process Owner (e.g.Retail Loan) … Process Owner (e.g. …) Process Owner (e.g. Retail Loan) … Process Owner (e.g. …) Process Owner (e.g. Retail Loan) … Process Owner (e.g. …) Process Owner (e.g. Retail Loan) … Process Owner (e.g. …) … GroupCompetence Coaches Group Competence Coaches Competence Coaches Competence Coaches Competence Coaches Competence Coaches Competence Coaches Competence Coaches Competence Coaches Competence Coaches Competence Coaches Competence Coaches Head of PM (Country 1) Head of PM (Country 1) Head of PM (Country 2) Head of PM (Country 2) Head of PM (Country …) Head of PM (Country …) Head of PM (Country …) Head of PM (Country …) Head of PM (Country n) Head of PM (Country n) Methodology View Business View Methodology View Methodology View Business View Business View … Process Owner (central Credit BO) Process Owner (e.g. …) Process Owner (e.g. …) Process Owner (e.g. …) Process Owner (e.g. …) Process Owner (e.g. …) EXAMPLE BusinessBusiness ProcessProcess ExpertsExperts 5 Year1 Year2 Year3 Year4 Year5 totals 7.158.700 1.574.914 1.574.914 1.574.914 1.574.914 13.458.356 33.609.224 67.218.447 100.827.671 120.993.205 134.436.895 457.085.443 26.450.524 65.643.533 99.252.757 119.418.291 132.861.981 26.450.524 92.094.057 191.346.814 310.765.106 443.627.087 26.450.524 57.582.047 76.371.774 80.603.945 78.664.959 CummulativeDCF 26.450.524 84.032.571 160.404.344 241.008.290 319.673.248 WACC=14% NPV 319.673.248 ROI 3296,29% PBP 0,15 DiscountedCashFlows Total cost TotalBenefits NetCashFlow(NCF) CummulativeNCF BenefitperSolution BPM ITAM ERPGRC CPM BPM ITAM ERP GRC CPM BenefitsperPhase Design Strategy Controlling Implement Strategy Design Implementation Controlling CostsperPhase Strategy Design Implementati on Controlling Strategy Design Implementation Controlling CostsperSolution BPM ITAM ERP GRC CPM BPM ITAM ERP GRC CPM BPMGovernance Opzetten BPM governance basis omgeving Uitwerking van het BPM Governance Concept Implementatie van het BPM Governance Concept KPI Set-up PPM envrionment Link KPI to Process model Figure 12-2Figure 12-2 withoutchange management Hartfacts (measurable) Softfacts (limitedmes.) Culture Management Employees Knowledge Organization Processes Strategy IT Scope ofprojects withchange managementScope ofprojects withoutchange management Hartfacts (measurable) Softfacts (limitedmes.) Culture Management Employees Knowledge Organization Processes Strategy IT Scope ofprojects withchange managementScope ofprojects Process Execution … Process Execution … Process Execution … Process Execution … Software Engineering … Software Engineering … Software Engineering … Rules Execution … Rules Execution … Rules Execution … Rules Execution …… Process Structure & Levels Standards, Conventions, Handbook, Guidelines Tools Procedures Roles Responsibilities Steering Committee Different SAP & BPM Projects : Blueprint, Realization and SupportDifferent SAP & BPM Projects : Blueprint, Realization and Support Common Process Repository BPM Approach & Standards BPM Organisation Standard Corporate Process Model Standard Corporate Process Model BPM Im plem entationBPMIm plem entationBPM DesignBPM DesignBPM StrategyBPM Strategy BP MCh angeBPM Ch ange Program &Program & Cap ability manag ementCap ability manag ement BP MSco pe &BPM Sco pe& BP MprogramBPM program managemen tma nagemen t Bu sin ess &Bu sin ess & Prod uctrequ irementsProd uctrequ irements Manage men tManagemen t BP MCo st&BPM Co st& Vend orVend or managemen tma nagemen t Bus ine ssBus ines s Strate gyStrateg y && KP IKP I’’ss Busines sBusiness TransformationTransformation ma nagemen tma nagement QM stan dardsQMs tan dards fo rBP Mfo rBP M improve me ntsimprove me nts BPMB PM KP IKPI’’ss Performa nceP erfo rman ce & SLA& SLA ’’ss BPM ControllingBPMControlling BPMB PM Supp ortS upp ort Man agementMan agement Organ izationOrgan ization Standard sStandards & Ownership& Ownership BPM Tools &BPM Tools & Con figurationCon figuratio n StandardsStandards BPM trainingBPM training & knowle dge& knowle dge Man agementMan agement ProcessProcess & Project& Project Standard sStandards BPMB PM Gov ernanceGove rn ance Man agementMan agement Chan ge Ma nagementChan ge Man agement StandardsStandards & Resp onsibities& Resp onsibities B PMB PM OperationalOperatio nal man agementmana gement BPM CC TCCe xpe rt Co nsu ltan t BPM CC exp erts BPM and PDSAP BPM CCe xperts BPM an d PD SAP BPM CC GRCex pert Cons ulta nt BPM CC BPM tra in in g expe rt BPM ch ang e mana ger BPM mod elers BPM ad min istrator BPM SAP PD expe rt BPM CPM ex pert BPM GRCex pert BPM QAe xpert BPM CC BPM CCh ead CPO = Chief Pro ces sOffice r BPM EAexp ert BPM arch itect Technology (basi s, programm ing, etc. .. ) GR Ct eam (cont rol s, authorizat ion, etc…) Change, C omm unicati onand Trai ning team nt egrat ion &Docum entat ion Technology (basi s, programm ing, etc. .. ) GR Ct eam (cont rol s, authorizat ion, etc…) Change, C omm unicati onand Trai ning team OTC e.g . Process X e.g. Project Managem ent PT Pe. g. Technology (basi s, programm ing, etc. .. ) GR Ct eam (cont rol s, authorizat ion, etc ) Change, C omm unicati onand Trai ning team I ntegration & Docum entat ion &Support Chi ef Inform ation Of fi cer ERPCompetenceCenter ManagerERP CompetenceCenter Manager SAP H elpd eskSAP H elpd esk SAP con sultantsSAP con sultants SAP testingSAP testing S AP Basi ssupp ortS AP Basi ssupp ort S AP ABA P SupportS AP ABA P Support S AP SSM supportS AP SSM support SAP A utho ri sati on supportSAP A utho ri sati on support SAP D ocumenta ti onsup portSAP D ocumenta ti onsup port SAP T rai ning suppo rtSAP T rai ning suppo rt Busines sArchitec t Informatio nArchite ct App lication Architect Infrastructuur Arc hitect Risk &Co ntro lArchitect QAma nage r Orga nisa tion architect HRM/ Commu nica tion Busines sUsers L ib ra rian (G)BPO= (Glob al)BPO (G)BPM= (Glo bal)BPM BusinessOwners ARISQA ARIS Modeller/ BPM CC Expert update model update model transfer transfer rejected rejected Archive database archived archived rejected rejected (G)BPO and/or ArchitecturalOwner 7 9
Alignment of multiple views in ARIS Processes RFC Process ViewsBPM targets Business RFC Projects Products & Services Processes © IDS Scheer AG www.ids-scheer.com Processes info Processes StatusFunctions Process Analysis Organization Cost BPM KPI’s Objectives Systems / tools
Evolution of Business Modeling to Business Process Management BusinessSemantics Business Analysis Modeling Operational BPM Platform Business Strategy Modeling © IDS Scheer AG www.ids-scheer.com BusinessSemantics Flowcharts Corporate Process Model Time Business Strategy Modeling C re at e c u s tom e r ord er L ega c y A pp XC u s tom er orde r c re at e d C us to m er ord er re c ei ve d S al es e m pl oy ee Thr oug hp ut tim e O rd er pro c es s i ng W I R i s k of m ul ti p le c u s t e nt ri es
Publication © IDS Scheer AG www.ids-scheer.com
Agenda ARIS BPM framework Enterprise BPM framework 22 11 ROI BPM framework33 © IDS Scheer AG www.ids-scheer.com
© IDS Scheer AG www.ids-scheer.com
Strategic Alignment is a primary driver 40% 50% 60% 70% For which of the following reasons did you implement a BPM solution? (Multiple responses allowed) Why start with BPM ? © IDS Scheer AG www.ids-scheer.com 62% 58% 51% 43% 51% 36% 31% 12% 0% 10% 20% 30% 40% Improve clarity and agreement on true business drivers Align day- to-day activities to business strategy Allow effective management intervention Achieve speed and accuracy of management reports Reduce cycle time of planning and reporting Identify and eliminate non-value add activities and reporting Facilitate SOX ongoing compliance Enhance productivity in day-to- day activities Strategy alignment Efficiency Source: Seventh Annual Survey of Technology Issues for Financial Executives – 2005.
High level financial business case for BPM projects ControllingControllingImplementationImplementationDesignDesignStrategyStrategy BPM communicationsBPM communications ManagementManagement Reduce Operational costsReduce Operational costs By allignment of the business usersBy allignment of the business users and business process informationand business process information BPM SupportBPM Support ManagementManagement Reduce BPM costsReduce BPM costs BPM Scope & BPM programBPM Scope & BPM program ManagementManagement Reduce Project costsReduce Project costs Business &Business & Product ManagementProduct Management Improve RevenueImprove Revenue By go to market alignment of businessBy go to market alignment of business requirements and market segmentsrequirements and market segments Business Strategy &Business Strategy & BPM objectivesBPM objectives Improve RevenueImprove Revenue By company focus on profitableBy company focus on profitable market segments & market strategymarket segments & market strategy Business TransformationBusiness Transformation ManagementManagement Reduce Operational costsReduce Operational costs By effective execution of theBy effective execution of the business processes and planningbusiness processes and planning BPM Tools & ConfigurationBPM Tools & Configuration StandardsStandards Reduce Project costsReduce Project costs Process & ProjectProcess & Project StandardsStandards Reduce Project costsReduce Project costs © IDS Scheer AG www.ids-scheer.com BPM Change Program &BPM Change Program & Objectives ManagementObjectives Management Reduce HRM costsReduce HRM costs By allignment of HRM / resourceBy allignment of HRM / resource planning and company objectivesplanning and company objectives By efficient support management ofBy efficient support management of the BPM business processesthe BPM business processes By optimalisation of the companyBy optimalisation of the company project portfolioproject portfolio BPM KPI ManagementBPM KPI Management & SLA’s& SLA’s Reduce Operational costsReduce Operational costs By management on the BPM KPIBy management on the BPM KPI performance of the processesperformance of the processes BPM FinancialBPM Financial ManagementManagement Reduce Operational costsReduce Operational costs By controling the ROI of ProjectsBy controling the ROI of Projects and company costs (ABC)and company costs (ABC) OrganizationOrganization StandardsStandards & Ownership& Ownership Reduce Project costsReduce Project costs By efficient design and utilizationBy efficient design and utilization of the process organisationof the process organisation QM standards for BPMQM standards for BPM ImprovementsImprovements Reduce Operational costsReduce Operational costs By optimalisation of theBy optimalisation of the business processesbusiness processes By efficient configuration andBy efficient configuration and validation of the processesvalidation of the processes BPM training & knowledgeBPM training & knowledge ManagementManagement Reduce Operational costsReduce Operational costs By improvements of the BPMBy improvements of the BPM competencies of the employeescompetencies of the employees By efficient design and utilizationBy efficient design and utilization of the business processesof the business processes BPM GovernanceBPM Governance ManagementManagement Reduce BPM costsReduce BPM costs By effcient management of the BPMBy effcient management of the BPM organisation and the BPM standardsorganisation and the BPM standards Change ManagementChange Management && AuthorizationsAuthorizations Reduce Project costsReduce Project costs By efficient implementation of theBy efficient implementation of the job descriptions and authorizationsjob descriptions and authorizations
BPM Business Value Map Business StrategyManagement 70.974 Business Management 85.169 Business Transformation 184.400 Business Communication Management 147.520 BPM Program Management 38.400 BPM Design 38.400 BPM Configuration Management 25.600 BPM Support Management 4.750 BPM Change Program 44.820 BPM Organizational Design 12.800 BPM Change Management 12.800 BPM Governance 3.800 BPM Financial Management 73.760 BPM QualityManagement 442.560 BPM Knowledge Management 221.280 BPM Objectives Management 73.760 Total 227.954 Total 578.929 Total 444.080 Total 229.830 Total 1.480.793 BPMBPMBPMBPM Strategy Design Implementation Controlling © IDS Scheer AG www.ids-scheer.com The financial calculations are based on the following financial key figures; Revenue Yearly logistic / operational costs Yearly Employee costs Profit margin Yearly cost of project portfolio Yearly average BPM project costs Yearly average BPM maintenance costs
5 Year 1 Year 2 Year 3 Year 4 Year 5 totals 7.158.700 1.574.914 1.574.914 1.574.914 1.574.914 13.458.356 2.231.651 4.463.301 6.694.952 8.033.942 8.926.602 30.350.447 -4.927.050 2.888.387 5.120.038 6.459.028 7.351.688 Total cost Total Benefits Net Cash Flow (NCF) Benefit per Solution BPM ITAM GRC CPM CAF BPM ITAM CAF GRC CPM Benefits per Phase Design Strategy Controlling Implement Strategy Design Implementation Controlling The benefits of a Holistic BPM Strategy In what area will I benefit the most? When will I reach the benefits? © IDS Scheer AG www.ids-scheer.com -4.927.050 -2.038.663 3.081.375 9.540.403 16.892.091 -4.927.050 2.533.673 3.939.703 4.359.660 4.352.789 Cummulative DCF -4.927.050 -2.393.377 1.546.326 5.905.986 10.258.775 WACC =14% NPV 10.258.775 ROI 125,51% PBP 2,22 Discounted Cash Flows Cummulative NCF Costs per Phase Design Strategy Implement Controlling Strategy Design Implementation Controlling Costs per Solution BPM ITAMGRC CPM CAF BPM ITAM CAF GRC CPM In what area should I invest? When should I invest? Support of the Central Management Team and the CPO is required.Support of the Central Management Team and the CPO is required. ROI calculation can be made based on annual report and benchmark valuesROI calculation can be made based on annual report and benchmark values
McKinsey Global Survey 750+ CEOs750+ CEOs agree that Business Model Innovation and Strategic Flexibility / Business Agility are top priorities and Critical SuccessFactors. © IDS Scheer AG www.ids-scheer.com
Any questions?Any questions? Frank Luyckx T: +31(0)6 433 642 32 © IDS Scheer AG www.ids-scheer.com T: +31(0)6 433 642 32 Frank.luyckx@ids-scheer.com

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Enterprise BPM Framework

  • 1.
    www.ids-scheer.com Enterprise BPM framework IDSScheer Nederland Frank Luyckx, Enterprise BPM solution champ
  • 2.
    Agenda ARIS BPM framework EnterpriseBPM framework 22 11 ROI BPM framework33 © IDS Scheer AG www.ids-scheer.com
  • 3.
    © IDS ScheerAG www.ids-scheer.com
  • 4.
    An organization shouldbe a school of fish To survive they have to react to changes quickly © IDS Scheer AG www.ids-scheer.com To survive they have to react to changes quickly Gartner : BPM is a structured approach employing methods, policies, metrics, management practices and software tools to measure, synchronize and continuously optimize the organization's activities and processes." "BPM governance is a management practice that provides for governance of a business's process environment toward the goal of improving agility and operational performance and revenue.
  • 5.
    Misalignment …. • Personalagendas • Politicking • No agreed routemap • No consistent measures TQM Continuous Improvement Customer Focus Productivity Empowerment Too many independent initiatives Just in time reskilling sales force effectiveness sales force effectiveness EDI No Clear Leadership Disillusioned Management © IDS Scheer AG www.ids-scheer.com • No consistent measures • No stretch targets • Shop floor disengaged
  • 6.
    Business 4 Driving forceswithin an organisation How can I manage my business results © IDS Scheer AG www.ids-scheer.com OrganizationProcess How can I manage my business processes How can I manage my organisation How can I control my business results
  • 7.
    4 Phases ofthe Process Life Cycle Management © IDS Scheer AG www.ids-scheer.com Strategy = Company Objectives & Business strategy Design = Functional design & Business analysis Implement = Solution development & Deployment preparation Controlling = Operational environment & Daily Maintenance
  • 8.
    IDS Business ProcessMaturity framework to reach Business agility Strategy Design Implementation Controlling Business Transformation Management Business Communications ManagementBusiness Strategy Business Management BPM Configuration Management BPM Support ManagementBPM Program Management BPM Design We want a new printer in the home market segment What are the specifications and logistical requirements ? How should I change the distribution centers and logistical concepts? Where can I find information of the new printer and my new responsibilities ? Business Management © IDS Scheer AG www.ids-scheer.com BPM Change management BPM GovernanceBPM Change Program BPM Organizational Design BPM Knowledge Management BPM Objectives ManagementBPM Financial Management BPM Quality Management What are the objectives for the organisation ? How should I design the new organisation? Does the organisation accept the new organisation structure ? How can I manage the organisational standards and responsibilities What processes & projects do I require ? How should the process design look like ? How should I confige the ICT applications and processes ? How can I daily support the ICT applications and processes ? What is the ROI and process cost of this new printer ? How can I improve the printers and logistical infrastructure? Does everybody understand the printer, applications & processes ? Does the new printer and BPM reaches the objectives ? Process Management Organisation Management Management Control
  • 9.
    BPM stakeholders BPMBPM ImplemImplemBPMDesignBPM DesignBPM StrategyBPM Strategy BPM ControlBPM Control JurgenJurgen SattlerSattler CEOCEO FrankFrank VolmerVolmer Paul BijsterPaul Bijster Business Development Manager SteveSteve MCALLISTERMCALLISTER Business Planner JohannaJohanna FeldmanFeldman IT GunnarGunnar OLSSONOLSSON IT System Carl BRAUNCarl BRAUN Head of Service Center RobertRobert THOMSONTHOMSON Business Business Management Process © IDS Scheer AG www.ids-scheer.com VolmerVolmer OperationsOperations Manager ClausClaus PettersonPetterson HRM manager MonikaMonika BAUDISCHBAUDISCH Financial services PeterPeter SONNTAGSONNTAG Global Business Owner PeterPeter MAYMAY Business Process Analyst IT Architect EtienneEtienne DUCRETDUCRET Knowledge Manager LindaLinda ROSENFELDROSENFELD Organisational Change Manager MarcusMarcus ANDERSENANDERSEN Project Manager, Operational Excellence WolfgangWolfgang BECKERBECKER Head of BPM Organization IT System Support Manager Business Architect Process Management Organisation Management Management Control
  • 10.
    Strategy Design ImplementationControlling BusinessTransformation CommunicationsManagementBusinessStrategy BusinessManagement BPMConfiguration Management BPM SupportManagementBPMProgram Management BPMDesign BPMproject portfolio Corporate processmodel BPMexecution platform BPMsystem support Businessanalysis Balanced score Card Products& servicesanalysis Busrequirementsmngmt Transformation management Continiousimprovements Communication platform Information management Business Management Process BPM Governance Framework with BPM projects © IDS Scheer AG www.ids-scheer.com BPMChange management BPM GovernanceBPMChange Program BPMOrganizational Design BPMKnowledge Management BPMObjectives ManagementBPM Financial Management BPMQuality Management BPMstakeholdersobjectives HRM organisational analysis BPMorganisation design BPMprocess owners BPMchange management Authorization concept BPMstandards& methods BPMescalation management BPMproject standards Corporate processmodel BPMarchitecture BPMexecution platform Documentation &testing BPMimpactanalysis Processcosting analysis BPMROI calculation Sixsigma projects BPMqualityanalysis BPMcontent management BPMtraining management BPMobjectivesanalysis BPMSLA management Process Management Organisation Management Management Control
  • 11.
    A higher BPMmaturity level generates benefits for the organisation Alignment , Harmonisation Rationalisation of: Products, Processes, Policies, Projects Platforms, Procedures, © IDS Scheer AG www.ids-scheer.com As each bird flaps its wings it creates an uplift for the bird following. By flying in a V formation the whole flock adds 71% of the flying range than if each bird were to fly alone. Procedures, Planning, Power, Performance, Politics, …… People
  • 12.
    BPM Maturity Levelsto measure alignment (CMMI, OMG) Integrated E2E processes and E2E process organization across the 5 BPM domains E2E process analysis of both the E2E processes and products Networked E2E processes with business partners Strategical market agility and proactive improvements enabled by piloting innovative new ideas and technologies 3 Standardized 4 Predictable BPM domain integration requires discipline by the complete organization Success depends on BPM Build a trusted relationship with your business partners ( suppliers and customers ) 5 Optimizing © IDS Scheer AG www.ids-scheer.com Individual process flows. Few activities are described. Individual planning motivation, efforts and heroics Unit process discipline is in place to repeat processes and reduce rework. Basic project management to track costs, schedule and functionality. Corporate E2E processes are standardized by an accepted methodology. BPM Competence Center monitors BPM projects - BPM tools - E2E process standards and products 1 Initial 2 Managed Success depends on employee competencies Success depends on management competencies Success depends on BPM competencies
  • 13.
    Concepts IDS BPMMaturity Model Maturity levels describes the levels that an organization moves through as it evolves from an immature organization without any process discipline to a mature organization where all processes are measured, managed and consistently improved. 5 Maturity levels Initial processes Managed processes Standard processes Predictable processes Optimizing processes BPM Tools can support an organization to reach a higher BPM maturity level © IDS Scheer AG www.ids-scheer.com A BPM Process area describes a cluster of related BPM processes within the organization. 16 BPM Process Area’s
  • 14.
    BPM Maturity Index BPMMaturityLevel2,4 2,8 2,0 2,3 2,3 BusinessStrategyManagement 2 BusinessManagement 2 BusinessTransformation 4 BusinessCommunicationManagement 1 BPMProgramManagement 4 BPMDesign 1 BPMConfigurationManagement 2 BPMSupportManagement 2 BPMChangeProgram 2 BPMOrganizationalDesign 2 BPMChangeManagement 1 BPMGovernance 4 BPMCostManagement 3 BPMQualityManagement 3 BPMKnowledgeManagement 2 BPMObjectivesManagement 2 BPMBPMBPMBPM Strategy Design Implementation Controlling © IDS Scheer AG www.ids-scheer.com The BPM Maturity Index determines whether the management team should start projects for: 1. The Formalisation & Management of the processes and procedures 2. The Standarisation & Alignment of the processes and procedures 3. The Optimalisation & Integration of the processes and procedures 4. The Innovation & Market Agility of the processes and procedures BPMCostManagement 3 BPMQualityManagement 3 BPMKnowledgeManagement 2 BPMObjectivesManagement 2
  • 15.
    Experiences of morethan 700 companies with BPM maturity models (INK, EFQM) The average results of the use of BPM maturity concepts are : Growth of Sales (37-77%) Growth operating income (18-48%) Better return on sales (4,4%-8%) © IDS Scheer AG www.ids-scheer.com More focus on the alignment of the business strategy and the processes Structure for operational management reporting and annual reporting Governance Structure for managing BPM within organisations
  • 16.
    Agenda ARIS BPM framework EnterpriseBPM framework 22 11 ROI BPM framework33 © IDS Scheer AG www.ids-scheer.com
  • 17.
    Project Preperation As-Is Models Detailed Process Models (Top/down) BlueprintRealisationRealisation FinalFinal PreparationPreparation Process Scope E2E Scope E2E Models Functional Unit Test Integration Tests User Acceptance Test Regression Tests Go LiveGo Live and Supportand Support Next Roll Out Support & Improvements Impact assessment BPM in een Project System Documentation Scope Models System Scope Org. Scope Interface Map Business Roles SAP Org. Model Test Authorisation Matrix Tests Change Request Management & Updated Process Models (Project Based) Change Request Mgnt (Governance Based) Publish Approved Blueprint Models Develop End User Training End User Training Portal Concept Business profiles training Change management Portal / content Communication User Documentation
  • 18.
    BPM ControllingBPM ControllingBPMImplementationBPM ImplementationBPM DesignBPM DesignBPM StrategyBPM Strategy BPMBPM CommunicationCommunication ManagementManagement BPMBPM SupportSupport ManagementManagement BPM configurationBPM configuration Management &Management & TestingTesting ProcessesProcesses & project& project ManagementManagement configurable start page with optionally • a start page image • a start model with clickable buttons • main menu functions views on database are configured in start model view on processes (navigation via process assignment tree) view on organization (navigation via assignment tree of organograms) overview of documents (navigation via structured document list) overview of files (navigation via flat list of files) Does bank master already exist? Bankm aster does NOT exist Bank master exists Change of bank m aster required? Change of bank m aster required Change of bank master NOT required Deletion of bank m aster required? Deletion of bank master required Deletion of bank master NOT required Bank chain update required? Create bank master C hange bank master Delete bank master Create Bank Change Bank Set Flag to Delete Bank Request for update approved SA PR/3 SA PR/3 Business Scenario Update bank master data ARIS EPC ARIS Test Scenarios TestDirector TT Test case Journal approved Save journal as complete transaction Display saved journal Journal saved ascomplete transaction Nochanges necessary Test case 22 Test case 22 TT Test case Journal approved Save journal as complete transaction Display saved journal Journal saved ascomplete transaction Nochanges necessary Test case 22 Test case 22 TT Test case Journal approved Save journal as complete transaction Display saved journal Journal saved ascomplete transaction Nochanges necessary Test case 22 Test case 22 TT Test case Save journal as complete transaction Display saved journal Journal saved ascomplete transaction Nochanges necessary Test case 22 Test case 22 TT Test case Save journal as complete transaction Display saved journal Journal saved ascomplete transaction Nochanges necessary Test case 22 Test case 22 TT Test case Save journal as complete transaction Display saved journal Journal saved ascomplete transaction Nochanges necessary Test case 22 Test case 22 TT Test case Save journalas complete transaction Display saved journal Journalsaved as complete transaction No changes necessary Test case 22 Test case 22 TT Test case Save journalas complete transaction Display saved journal Journalsaved as complete transaction No changes necessary Test case 22 Test case 22 TT Test case Save journalas complete transaction Display saved journal Journalsaved as complete transaction No changes necessary Test case 22 Test case 22 Business Process Management platform based on ARIS © IDS Scheer AG www.ids-scheer.com ManagementManagement OrganizationOrganization StandardsStandards & BPO’s& BPO’s TestingTesting BPM KnowledgeBPM Knowledge Management &Management & TrainingTraining ManagementManagement BPMBPM GovernanceGovernance ManagementManagement BPM ChangeBPM Change ManagementManagement && AuthorizationsAuthorizations Sales Manager Germany Sales Representative Germany Sales Manager Germany Technical Specialist Germany Sales Representative Americas Employee Sales Sales Manager Sales Manager Americas Technical Specialist Americas Employee Sales Germany Employee Sales Americas RoleRole PositionPosition From ARIS process model to requ.Spec. From portalto e-learning offers From SAP application to ARIS process model From ARIS Process model to SAP applocation From portal to FAQlists From portal to ARIS process world From portal to requirements specification Bank chain update required Bank chain update NOT required Create/change bankdata Readyto inform user of update to bank master data Maintain bank chains for partner SAP R/3 SAP R/3 Journal approved Journal approved Journal approved Journal approved Journal approved Journal approved
  • 19.
    BPM Governance Frameworkwith BPM projects BPM ControllingBPM ControllingBPM ImplementationBPM ImplementationBPM DesignBPM DesignBPM StrategyBPM Strategy BPMBPM CommunicationCommunication ManagementManagement BPMBPM SupportSupport ManagementManagement BPM programBPM program managementmanagement Business &Business & ProductProduct ManagementManagement BusinessBusiness Strategy &Strategy & BPM objectivesBPM objectives BusinessBusiness TransformationTransformation ManagementManagement BPM Testing &BPM Testing & ConfigurationConfiguration ManagementManagement ProcessesProcesses DesignDesign ManagementManagement Innovation & learning Financial Internal Business Perspective How do we look to our stockholders? At what must we excel? Can we continue to improve and create value? How do our customers see us? Strategy BusinessBusiness ModelModel ChangesChanges BusinessBusiness ProcessesProcesses ChangesChanges BusinessBusiness ApplicationsApplications ChangesChanges New ServicesNew Services New ProductsNew Products AcquisitionAcquisition New Sales Channels New Sales Channels New MarketsNew Markets New PartnersNew Partners . . .. . . New ProcessesNew Processes New Process Flows New Process Flows New Departments New Departments New Business Functions New Business Functions New UPI‘sNew UPI‘s New Responsibilities New Responsibilities New Information Access New Information Access ModificationsModifications CompositionComposition . . .. . . IntegrationIntegrationExtensionsExtensions StrategyStrategy BPMBPM ITIT SAPERP UVA proj Fase 1 Fase 2 Week / Maand Corporate Process Model level 1, 2 en 3 BPM inkoop (level 4) Implementatie SSM en synchronisatie ARIS Projecten adminstratie Finance, HRM, Vastgoed Studenten adminstratie Process verbeteringen / Faculteit validatie (CM) 13 14 15 16 17 18 19 20 21 22 Fase 3 BPM Opzetten BPM governance 23 24 25 26 27 28 29 Opzetten BPM conventies Fase 4 BPMNBPMN ARIS Repository Event-Driven Process ChainWSDL «interface» «wsdlPortType» http://creditsales.soa.umg.ids.com/::CreditSalesService «wsdlOperation»+calculateCreditIncreaseProposal(incalculateCreditIncreaseProposa... «wsdlOperation»+changeCreditApplication(inchangeCreditApplicationRequest:Credit... «wsdlOperation»+checkCustomerPaymentCapacity(incheckCustomerPaymentCapa... «reside»«reside»«reside» «wsdlService» http://creditsales.soa.umg.ids.com/::CreditSalesService WSDL «interface» «wsdlPortType» http://creditsales.soa.umg.ids.com/::CreditSalesService «wsdlOperation»+calculateCreditIncreaseProposal(incalculateCreditIncreaseProposa... «wsdlOperation»+changeCreditApplication(inchangeCreditApplicationRequest:Credit... «wsdlOperation»+checkCustomerPaymentCapacity(incheckCustomerPaymentCapa... «reside»«reside»«reside» «wsdlService» http://creditsales.soa.umg.ids.com/::CreditSalesService BPEL Process Execution BPELBPEL Process ExecutionProcess ExecutionProcess Execution «busi nessClass» Movie ti tle:String duration:Integer «busi nessClass» Show begi nni ng:Date =null numberOfSoldTickets:Integer schedule(i nbegi nning:Date) cancel() movie():Movi e{query} begi nni ng():Date {query} avai labl eTi ckets():Integer{query} createReservation(in requestedTickets:Integer):Reservation cancelReservations() addReservation(i nreservation:Reservati on) «busi nessClass» MovieTheater name:String shows(i nmovi e:Movie):Show[*]{query} «busi nessClass» Theater number:Integer seatCount:Integer shows(inmovie:Movi e):Show[*]{query} shows(inmovie:Movi e,i nbegi nning:Date):Show{query} 1 1..*1 1..* 1 * 1 * *1 *1 «busi nessClass» Reservation numberOfReservedTickets:Integer reservationCode:Integer «create»create(i nshow:Show,innumberOfTickets:Integer):Reservati on * 1 * 1 «busi nessClass» Ticket * 1* 1 * * * * UML Software Engineering «busi nessClass» Movie ti tle:String duration:Integer «busi nessClass» Show begi nni ng:Date =null numberOfSoldTickets:Integer schedule(i nbegi nning:Date) cancel() movie():Movi e{query} begi nni ng():Date {query} avai labl eTi ckets():Integer{query} createReservation(in requestedTickets:Integer):Reservation cancelReservations() addReservation(i nreservation:Reservati on) «busi nessClass» MovieTheater name:String shows(i nmovi e:Movie):Show[*]{query} «busi nessClass» Theater number:Integer seatCount:Integer shows(inmovie:Movi e):Show[*]{query} shows(inmovie:Movi e,i nbegi nning:Date):Show{query} 1 1..*1 1..* 1 * 1 * *1 *1 «busi nessClass» Reservation numberOfReservedTickets:Integer reservationCode:Integer «create»create(i nshow:Show,innumberOfTickets:Integer):Reservati on * 1 * 1 «busi nessClass» Ticket * 1* 1 * * * * UML «busi nessClass» Movie ti tle:String duration:Integer «busi nessClass» Show begi nni ng:Date =null numberOfSoldTickets:Integer schedule(i nbegi nning:Date) cancel() movie():Movi e{query} begi nni ng():Date {query} avai labl eTi ckets():Integer{query} createReservation(in requestedTickets:Integer):Reservation cancelReservations() addReservation(i nreservation:Reservati on) «busi nessClass» MovieTheater name:String shows(i nmovi e:Movie):Show[*]{query} «busi nessClass» Theater number:Integer seatCount:Integer shows(inmovie:Movi e):Show[*]{query} shows(inmovie:Movi e,i nbegi nning:Date):Show{query} 1 1..*1 1..* 1 * 1 * *1 *1 «busi nessClass» Reservation numberOfReservedTickets:Integer reservationCode:Integer «create»create(i nshow:Show,innumberOfTickets:Integer):Reservati on * 1 * 1 «busi nessClass» Ticket * 1* 1 * * * * UML Software EngineeringSoftware Engineering Rules Rules Execution Rules Rules Execution RulesRulesRules Rules ExecutionRules Execution BANF_Update BANF_IF BANF_Update BANF_IF BANF_Update BANF_IF BANF_Update BANF_IF BANF_Update BANF_IF BANF_Update BANF_IF configurable start page with optionally • a start page image • a start model with clickable buttons • main menu functions views on database are configured in start model view on processes (navigation via process assignment tree) view on organization (navigation via assignment tree of organograms) overview of documents (navigation via structured document list) overview of files (navigation via flat list of files) End users check check update update create model create model transfer transfer approved approved Development database Productiondatabase Archive database released released check check approved approved transfer transfer check check check check Review database RCM – workflow Modelling RCM-scripts Database Synchronisation and Web publication 1 6a 5 4 32 6b 8 10 © IDS Scheer AG www.ids-scheer.com BPM ChangeBPM Change ProgramProgram ManagementManagement BPM KPI’sBPM KPI’s ManagementManagement & SLA’s& SLA’s BPMBPM FinancialFinancial ManagementManagement OrganizationOrganization StandardsStandards & Ownership& Ownership QA ManagementQA Management for BPMfor BPM improvementsimprovements Control Monitoring the new process Define ARIS Process Models, Objectives, Project description Analyse Calculations & comparisons of historical data Improve What if scenarios and definition of tasks Measure ARIS Business Optimizer Scenarios Control Monitoring the new process Define ARIS Process Models, Objectives, Project description Analyse Calculations & comparisons of historical data Improve What if scenarios and definition of tasks Measure ARIS Business Optimizer Scenarios ManagementManagement BPM trainingBPM training & knowledge& knowledge ManagementManagement ManagementManagement BPMBPM GovernanceGovernance ManagementManagement ChangeChange ManagementManagement && AuthorizationsAuthorizations Structural Relations between Process Management RolesStructural Relations between Process Management Roles Process Coordinator (Country 2) Head of Group Process Mgmt Head of Group Process Mgmt Process Owner (e.g. Retail Loan) … Process Coordinator (Retail Loan) Process Owner (e.g. …) Process Owner (e.g.Retail Loan) … Process Owner (e.g. …) Process Owner (e.g. Retail Loan) … Process Owner (e.g. …) Process Owner (e.g. Retail Loan) … Process Owner (e.g. …) Process Owner (e.g. Retail Loan) … Process Owner (e.g. …) … GroupCompetence Coaches Group Competence Coaches Competence Coaches Competence Coaches Competence Coaches Competence Coaches Competence Coaches Competence Coaches Competence Coaches Competence Coaches Competence Coaches Competence Coaches Head of PM (Country 1) Head of PM (Country 1) Head of PM (Country 2) Head of PM (Country 2) Head of PM (Country …) Head of PM (Country …) Head of PM (Country …) Head of PM (Country …) Head of PM (Country n) Head of PM (Country n) Methodology View Business View Methodology View Methodology View Business View Business View … Process Owner (central Credit BO) Process Owner (e.g. …) Process Owner (e.g. …) Process Owner (e.g. …) Process Owner (e.g. …) Process Owner (e.g. …) EXAMPLE BusinessBusiness ProcessProcess ExpertsExperts 5 Year1 Year2 Year3 Year4 Year5 totals 7.158.700 1.574.914 1.574.914 1.574.914 1.574.914 13.458.356 33.609.224 67.218.447 100.827.671 120.993.205 134.436.895 457.085.443 26.450.524 65.643.533 99.252.757 119.418.291 132.861.981 26.450.524 92.094.057 191.346.814 310.765.106 443.627.087 26.450.524 57.582.047 76.371.774 80.603.945 78.664.959 CummulativeDCF 26.450.524 84.032.571 160.404.344 241.008.290 319.673.248 WACC=14% NPV 319.673.248 ROI 3296,29% PBP 0,15 DiscountedCashFlows Total cost TotalBenefits NetCashFlow(NCF) CummulativeNCF BenefitperSolution BPM ITAM ERPGRC CPM BPM ITAM ERP GRC CPM BenefitsperPhase Design Strategy Controlling Implement Strategy Design Implementation Controlling CostsperPhase Strategy Design Implementati on Controlling Strategy Design Implementation Controlling CostsperSolution BPM ITAM ERP GRC CPM BPM ITAM ERP GRC CPM BPMGovernance Opzetten BPM governance basis omgeving Uitwerking van het BPM Governance Concept Implementatie van het BPM Governance Concept KPI Set-up PPM envrionment Link KPI to Process model Figure 12-2Figure 12-2 withoutchange management Hartfacts (measurable) Softfacts (limitedmes.) Culture Management Employees Knowledge Organization Processes Strategy IT Scope ofprojects withchange managementScope ofprojects withoutchange management Hartfacts (measurable) Softfacts (limitedmes.) Culture Management Employees Knowledge Organization Processes Strategy IT Scope ofprojects withchange managementScope ofprojects Process Execution … Process Execution … Process Execution … Process Execution … Software Engineering … Software Engineering … Software Engineering … Rules Execution … Rules Execution … Rules Execution … Rules Execution …… Process Structure & Levels Standards, Conventions, Handbook, Guidelines Tools Procedures Roles Responsibilities Steering Committee Different SAP & BPM Projects : Blueprint, Realization and SupportDifferent SAP & BPM Projects : Blueprint, Realization and Support Common Process Repository BPM Approach & Standards BPM Organisation Standard Corporate Process Model Standard Corporate Process Model BPM Im plem entationBPMIm plem entationBPM DesignBPM DesignBPM StrategyBPM Strategy BP MCh angeBPM Ch ange Program &Program & Cap ability manag ementCap ability manag ement BP MSco pe &BPM Sco pe& BP MprogramBPM program managemen tma nagemen t Bu sin ess &Bu sin ess & Prod uctrequ irementsProd uctrequ irements Manage men tManagemen t BP MCo st&BPM Co st& Vend orVend or managemen tma nagemen t Bus ine ssBus ines s Strate gyStrateg y && KP IKP I’’ss Busines sBusiness TransformationTransformation ma nagemen tma nagement QM stan dardsQMs tan dards fo rBP Mfo rBP M improve me ntsimprove me nts BPMB PM KP IKPI’’ss Performa nceP erfo rman ce & SLA& SLA ’’ss BPM ControllingBPMControlling BPMB PM Supp ortS upp ort Man agementMan agement Organ izationOrgan ization Standard sStandards & Ownership& Ownership BPM Tools &BPM Tools & Con figurationCon figuratio n StandardsStandards BPM trainingBPM training & knowle dge& knowle dge Man agementMan agement ProcessProcess & Project& Project Standard sStandards BPMB PM Gov ernanceGove rn ance Man agementMan agement Chan ge Ma nagementChan ge Man agement StandardsStandards & Resp onsibities& Resp onsibities B PMB PM OperationalOperatio nal man agementmana gement BPM CC TCCe xpe rt Co nsu ltan t BPM CC exp erts BPM and PDSAP BPM CCe xperts BPM an d PD SAP BPM CC GRCex pert Cons ulta nt BPM CC BPM tra in in g expe rt BPM ch ang e mana ger BPM mod elers BPM ad min istrator BPM SAP PD expe rt BPM CPM ex pert BPM GRCex pert BPM QAe xpert BPM CC BPM CCh ead CPO = Chief Pro ces sOffice r BPM EAexp ert BPM arch itect Technology (basi s, programm ing, etc. .. ) GR Ct eam (cont rol s, authorizat ion, etc…) Change, C omm unicati onand Trai ning team nt egrat ion &Docum entat ion Technology (basi s, programm ing, etc. .. ) GR Ct eam (cont rol s, authorizat ion, etc…) Change, C omm unicati onand Trai ning team OTC e.g . Process X e.g. Project Managem ent PT Pe. g. Technology (basi s, programm ing, etc. .. ) GR Ct eam (cont rol s, authorizat ion, etc ) Change, C omm unicati onand Trai ning team I ntegration & Docum entat ion &Support Chi ef Inform ation Of fi cer ERPCompetenceCenter ManagerERP CompetenceCenter Manager SAP H elpd eskSAP H elpd esk SAP con sultantsSAP con sultants SAP testingSAP testing S AP Basi ssupp ortS AP Basi ssupp ort S AP ABA P SupportS AP ABA P Support S AP SSM supportS AP SSM support SAP A utho ri sati on supportSAP A utho ri sati on support SAP D ocumenta ti onsup portSAP D ocumenta ti onsup port SAP T rai ning suppo rtSAP T rai ning suppo rt Busines sArchitec t Informatio nArchite ct App lication Architect Infrastructuur Arc hitect Risk &Co ntro lArchitect QAma nage r Orga nisa tion architect HRM/ Commu nica tion Busines sUsers L ib ra rian (G)BPO= (Glob al)BPO (G)BPM= (Glo bal)BPM BusinessOwners ARISQA ARIS Modeller/ BPM CC Expert update model update model transfer transfer rejected rejected Archive database archived archived rejected rejected (G)BPO and/or ArchitecturalOwner 7 9
  • 20.
    Alignment of multipleviews in ARIS Processes RFC Process ViewsBPM targets Business RFC Projects Products & Services Processes © IDS Scheer AG www.ids-scheer.com Processes info Processes StatusFunctions Process Analysis Organization Cost BPM KPI’s Objectives Systems / tools
  • 21.
    Evolution of BusinessModeling to Business Process Management BusinessSemantics Business Analysis Modeling Operational BPM Platform Business Strategy Modeling © IDS Scheer AG www.ids-scheer.com BusinessSemantics Flowcharts Corporate Process Model Time Business Strategy Modeling C re at e c u s tom e r ord er L ega c y A pp XC u s tom er orde r c re at e d C us to m er ord er re c ei ve d S al es e m pl oy ee Thr oug hp ut tim e O rd er pro c es s i ng W I R i s k of m ul ti p le c u s t e nt ri es
  • 22.
    Publication © IDS ScheerAG www.ids-scheer.com
  • 23.
    Agenda ARIS BPM framework EnterpriseBPM framework 22 11 ROI BPM framework33 © IDS Scheer AG www.ids-scheer.com
  • 24.
    © IDS ScheerAG www.ids-scheer.com
  • 25.
    Strategic Alignment isa primary driver 40% 50% 60% 70% For which of the following reasons did you implement a BPM solution? (Multiple responses allowed) Why start with BPM ? © IDS Scheer AG www.ids-scheer.com 62% 58% 51% 43% 51% 36% 31% 12% 0% 10% 20% 30% 40% Improve clarity and agreement on true business drivers Align day- to-day activities to business strategy Allow effective management intervention Achieve speed and accuracy of management reports Reduce cycle time of planning and reporting Identify and eliminate non-value add activities and reporting Facilitate SOX ongoing compliance Enhance productivity in day-to- day activities Strategy alignment Efficiency Source: Seventh Annual Survey of Technology Issues for Financial Executives – 2005.
  • 26.
    High level financialbusiness case for BPM projects ControllingControllingImplementationImplementationDesignDesignStrategyStrategy BPM communicationsBPM communications ManagementManagement Reduce Operational costsReduce Operational costs By allignment of the business usersBy allignment of the business users and business process informationand business process information BPM SupportBPM Support ManagementManagement Reduce BPM costsReduce BPM costs BPM Scope & BPM programBPM Scope & BPM program ManagementManagement Reduce Project costsReduce Project costs Business &Business & Product ManagementProduct Management Improve RevenueImprove Revenue By go to market alignment of businessBy go to market alignment of business requirements and market segmentsrequirements and market segments Business Strategy &Business Strategy & BPM objectivesBPM objectives Improve RevenueImprove Revenue By company focus on profitableBy company focus on profitable market segments & market strategymarket segments & market strategy Business TransformationBusiness Transformation ManagementManagement Reduce Operational costsReduce Operational costs By effective execution of theBy effective execution of the business processes and planningbusiness processes and planning BPM Tools & ConfigurationBPM Tools & Configuration StandardsStandards Reduce Project costsReduce Project costs Process & ProjectProcess & Project StandardsStandards Reduce Project costsReduce Project costs © IDS Scheer AG www.ids-scheer.com BPM Change Program &BPM Change Program & Objectives ManagementObjectives Management Reduce HRM costsReduce HRM costs By allignment of HRM / resourceBy allignment of HRM / resource planning and company objectivesplanning and company objectives By efficient support management ofBy efficient support management of the BPM business processesthe BPM business processes By optimalisation of the companyBy optimalisation of the company project portfolioproject portfolio BPM KPI ManagementBPM KPI Management & SLA’s& SLA’s Reduce Operational costsReduce Operational costs By management on the BPM KPIBy management on the BPM KPI performance of the processesperformance of the processes BPM FinancialBPM Financial ManagementManagement Reduce Operational costsReduce Operational costs By controling the ROI of ProjectsBy controling the ROI of Projects and company costs (ABC)and company costs (ABC) OrganizationOrganization StandardsStandards & Ownership& Ownership Reduce Project costsReduce Project costs By efficient design and utilizationBy efficient design and utilization of the process organisationof the process organisation QM standards for BPMQM standards for BPM ImprovementsImprovements Reduce Operational costsReduce Operational costs By optimalisation of theBy optimalisation of the business processesbusiness processes By efficient configuration andBy efficient configuration and validation of the processesvalidation of the processes BPM training & knowledgeBPM training & knowledge ManagementManagement Reduce Operational costsReduce Operational costs By improvements of the BPMBy improvements of the BPM competencies of the employeescompetencies of the employees By efficient design and utilizationBy efficient design and utilization of the business processesof the business processes BPM GovernanceBPM Governance ManagementManagement Reduce BPM costsReduce BPM costs By effcient management of the BPMBy effcient management of the BPM organisation and the BPM standardsorganisation and the BPM standards Change ManagementChange Management && AuthorizationsAuthorizations Reduce Project costsReduce Project costs By efficient implementation of theBy efficient implementation of the job descriptions and authorizationsjob descriptions and authorizations
  • 27.
    BPM Business ValueMap Business StrategyManagement 70.974 Business Management 85.169 Business Transformation 184.400 Business Communication Management 147.520 BPM Program Management 38.400 BPM Design 38.400 BPM Configuration Management 25.600 BPM Support Management 4.750 BPM Change Program 44.820 BPM Organizational Design 12.800 BPM Change Management 12.800 BPM Governance 3.800 BPM Financial Management 73.760 BPM QualityManagement 442.560 BPM Knowledge Management 221.280 BPM Objectives Management 73.760 Total 227.954 Total 578.929 Total 444.080 Total 229.830 Total 1.480.793 BPMBPMBPMBPM Strategy Design Implementation Controlling © IDS Scheer AG www.ids-scheer.com The financial calculations are based on the following financial key figures; Revenue Yearly logistic / operational costs Yearly Employee costs Profit margin Yearly cost of project portfolio Yearly average BPM project costs Yearly average BPM maintenance costs
  • 28.
    5 Year 1Year 2 Year 3 Year 4 Year 5 totals 7.158.700 1.574.914 1.574.914 1.574.914 1.574.914 13.458.356 2.231.651 4.463.301 6.694.952 8.033.942 8.926.602 30.350.447 -4.927.050 2.888.387 5.120.038 6.459.028 7.351.688 Total cost Total Benefits Net Cash Flow (NCF) Benefit per Solution BPM ITAM GRC CPM CAF BPM ITAM CAF GRC CPM Benefits per Phase Design Strategy Controlling Implement Strategy Design Implementation Controlling The benefits of a Holistic BPM Strategy In what area will I benefit the most? When will I reach the benefits? © IDS Scheer AG www.ids-scheer.com -4.927.050 -2.038.663 3.081.375 9.540.403 16.892.091 -4.927.050 2.533.673 3.939.703 4.359.660 4.352.789 Cummulative DCF -4.927.050 -2.393.377 1.546.326 5.905.986 10.258.775 WACC =14% NPV 10.258.775 ROI 125,51% PBP 2,22 Discounted Cash Flows Cummulative NCF Costs per Phase Design Strategy Implement Controlling Strategy Design Implementation Controlling Costs per Solution BPM ITAMGRC CPM CAF BPM ITAM CAF GRC CPM In what area should I invest? When should I invest? Support of the Central Management Team and the CPO is required.Support of the Central Management Team and the CPO is required. ROI calculation can be made based on annual report and benchmark valuesROI calculation can be made based on annual report and benchmark values
  • 29.
    McKinsey Global Survey 750+CEOs750+ CEOs agree that Business Model Innovation and Strategic Flexibility / Business Agility are top priorities and Critical SuccessFactors. © IDS Scheer AG www.ids-scheer.com
  • 30.
    Any questions?Any questions? FrankLuyckx T: +31(0)6 433 642 32 © IDS Scheer AG www.ids-scheer.com T: +31(0)6 433 642 32 Frank.luyckx@ids-scheer.com