IT enablement, digitization and automation are crucial for supporting processes that are cost-effective and value-rich. Nonetheless, technology can only deliver these benefits if businesses understand the flaws in their processes and take steps to rectify them. Using a structured, comprehensive approach, companies can clearly define and deconstruct inefficient processes and reconstruct them to achieve the desired outcomes, a clear and quantifiable return on investment.
The document discusses how business performance management (BPM) and a balanced scorecard approach can simplify outsourcing decisions. BPM involves tracking key performance indicators in real-time to monitor business processes. It establishes objectives, measures processes, and defines acceptable performance levels. This provides transparency to evaluate vendors. The balanced scorecard considers financial, customer, internal process, and learning/growth metrics. It ensures operations align with strategy. BPM dashboards then allow managers to monitor current performance and drill down if needed. This approach was applied successfully to improve claims processing at an insurance company by better aligning staff and reducing cycle times.
Business Process Management and Information TechnologyAshish Desai
1. The document provides an overview of business processes and business process management. It defines key terms like process, business process, and discusses concepts like process orientation and classification of business processes.
2. It also covers principles of business process management around continuous improvement, measurement and management of processes. Various practices of BPM like process-oriented structures, appointing process owners and using IT are explained.
3. Theories and approaches to process management like Six Sigma, Total Quality Management and Business Process Reengineering are summarized with their key steps and goals to improve processes.
This document summarizes a meeting between nonprofit experts discussing evolving nonprofit regulations and standards in 2015. Key topics discussed include proposed changes to accounting rules for nonprofits, the New York Nonprofit Revitalization Act, the Uniform Grant Guidance, and how the nonprofit sector is moving towards increased use of data and performance metrics. The experts recommend that nonprofits have the systems needed to manage compliance requirements and reporting, eliminate the use of spreadsheets, and provide clear visibility into financial and operational metrics.
Predicting the Customer Experience: A Convergence of Business Process, Decisi...Prolifics
The document discusses business process management (BPM) and its evolution from structured workflows to more flexible case management processes driven by analytics, context, and external events. It argues that BPM must accommodate comprehensive, dynamic process lifecycles and shift from transactional control to data-driven visibility in order to deliver optimal customer experiences in today's digital marketplace. Key success factors for BPM going forward include gaining holistic visibility across business operations and measuring performance based on revenue and customer experience metrics rather than just costs.
The Landscape Of Tech Around Accounts PayableMineralTree
Having a good understanding of today’s AP solutions landscape will help you make a more informed, easier decision about which solution will work best for your organization.
BPM Fundamentals: Develop Your Game Plan For BPM SuccessClay Richardson
Presentation on BPM fundamentals at PegaWorld. Introduces business process professionals to drivers for bpm, defining the business case, evaluating ROI, and when/where to use technology.
THE CIO PLAYBOOK NINE STEPS CIOS MUST TAKE FOR SUCCESSFUL DIVESTITUREAbhishek Sood
The document provides a 9-step playbook for CIOs to ensure successful IT divestitures. It begins with conducting a thorough review of the transition services agreement to understand requirements. A cross-functional team is then formed to manage the IT aspects. A top-down, process-centric approach is recommended over a bottom-up data focus. Automated tools and methodologies are emphasized to reduce risks and costs. Testing is iterative to identify issues early. The post-delivery transition is also planned to support requirements after handover. Danger signs of past failed divestitures are outlined to avoid.
The document discusses how business performance management (BPM) and a balanced scorecard approach can simplify outsourcing decisions. BPM involves tracking key performance indicators in real-time to monitor business processes. It establishes objectives, measures processes, and defines acceptable performance levels. This provides transparency to evaluate vendors. The balanced scorecard considers financial, customer, internal process, and learning/growth metrics. It ensures operations align with strategy. BPM dashboards then allow managers to monitor current performance and drill down if needed. This approach was applied successfully to improve claims processing at an insurance company by better aligning staff and reducing cycle times.
Business Process Management and Information TechnologyAshish Desai
1. The document provides an overview of business processes and business process management. It defines key terms like process, business process, and discusses concepts like process orientation and classification of business processes.
2. It also covers principles of business process management around continuous improvement, measurement and management of processes. Various practices of BPM like process-oriented structures, appointing process owners and using IT are explained.
3. Theories and approaches to process management like Six Sigma, Total Quality Management and Business Process Reengineering are summarized with their key steps and goals to improve processes.
This document summarizes a meeting between nonprofit experts discussing evolving nonprofit regulations and standards in 2015. Key topics discussed include proposed changes to accounting rules for nonprofits, the New York Nonprofit Revitalization Act, the Uniform Grant Guidance, and how the nonprofit sector is moving towards increased use of data and performance metrics. The experts recommend that nonprofits have the systems needed to manage compliance requirements and reporting, eliminate the use of spreadsheets, and provide clear visibility into financial and operational metrics.
Predicting the Customer Experience: A Convergence of Business Process, Decisi...Prolifics
The document discusses business process management (BPM) and its evolution from structured workflows to more flexible case management processes driven by analytics, context, and external events. It argues that BPM must accommodate comprehensive, dynamic process lifecycles and shift from transactional control to data-driven visibility in order to deliver optimal customer experiences in today's digital marketplace. Key success factors for BPM going forward include gaining holistic visibility across business operations and measuring performance based on revenue and customer experience metrics rather than just costs.
The Landscape Of Tech Around Accounts PayableMineralTree
Having a good understanding of today’s AP solutions landscape will help you make a more informed, easier decision about which solution will work best for your organization.
BPM Fundamentals: Develop Your Game Plan For BPM SuccessClay Richardson
Presentation on BPM fundamentals at PegaWorld. Introduces business process professionals to drivers for bpm, defining the business case, evaluating ROI, and when/where to use technology.
THE CIO PLAYBOOK NINE STEPS CIOS MUST TAKE FOR SUCCESSFUL DIVESTITUREAbhishek Sood
The document provides a 9-step playbook for CIOs to ensure successful IT divestitures. It begins with conducting a thorough review of the transition services agreement to understand requirements. A cross-functional team is then formed to manage the IT aspects. A top-down, process-centric approach is recommended over a bottom-up data focus. Automated tools and methodologies are emphasized to reduce risks and costs. Testing is iterative to identify issues early. The post-delivery transition is also planned to support requirements after handover. Danger signs of past failed divestitures are outlined to avoid.
Internal controls should be built into business processes rather than added onto them. Internal auditing helps evaluate risk management, control, and governance processes to improve an organization's operations. It involves analyzing key processes and controls, evaluating control adequacy, testing compliance, and recommending improvements. The benefits of internal auditing include correct financial figures, timely work completion, and fraud detection.
Business process management (BPM) is the discipline of improving a business process from end to end by analyzing it, modelling how it works in different scenarios, executing improvements, monitoring the improved process and continually optimizing it.
Fundamentals of Business Process Management - Tutorial at CAiSE'2018Marlon Dumas
Slides of the tutorial "Fundamentals of BPM: Fifty Years of BPM Teaching Distilled" delivered at the 30th International Conference on Advanced Information Systems Engineering (CAiSE'2018) in Tallinn, Estonia, 13 June 2018. https://caise2018.ut.ee/
Predicting the Customer Experience: A Convergence of Business Process, Deci...Nathaniel Palmer
This document discusses business process management (BPM) and operational decision management (ODM). It provides background on Nathaniel Palmer, an expert in BPM, and defines BPM. It then discusses the evolution of BPM from early automation to today's data-driven processes. It argues that BPM and ODM can help organizations act sooner by reducing latency in responding to business events. Finally, it provides advice on developing a BPM strategy, including focusing on growth metrics, engaging customers, and starting with the right initial processes.
This PPT deck displays thirtyseven slides with in depth research. Our Bpm Powerpoint Presentation Slides presentation deck is a helpful tool to plan, prepare, document and analyse the topic with a clear approach. We provide a ready to use deck with all sorts of relevant topics subtopics templates, charts and graphs, overviews, analysis templates. Outline all the important aspects without any hassle. It showcases of all kinds of editable templates infographics for an inclusive and comprehensive Bpm PowerPoint Presentation Slides presentation. Professionals, managers, individual and team involved in any company organization from any field can use them as per requirement.
BPA, BPI, BPM ... We’ve rounded up some of the most-often-used words, phrases and acronyms in the business process outsourcing industry and put them together in a BPO Glossary.
The document discusses several topics related to business process reengineering and IT solutions. It describes key indicators that an IT vendor solution may be best for implementing business process reengineering, such as dysfunctionality in the current system. It also discusses the key strengths of service-oriented architectures for modern businesses, including modularity, reusability, and self-contained services. Additionally, it describes how tools like environmental analysis, SWOT analysis, value chain analysis, and business strategy choice can influence business process reengineering and provides examples. Standards for measuring organizational performance and information systems functions are also rated.
Business Process-Reengineering BPR MoghimiBahman Moghimi
The document outlines a presentation on business process reengineering (BPR). It begins with an introduction to BPR and defines it as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in performance metrics. It then discusses various levels of change an organization can undergo from automation to reengineering. The rest of the presentation covers key aspects of implementing a BPR strategy such as selecting processes and teams, understanding the current process, developing a vision for improved processes, identifying action plans, and addressing challenges and IT benefits.
Introduction to Business Process Analysis and RedesignMarlon Dumas
Special course on business process analysis and design delivered at University of Granada on 23-24 January 2014. The course covers qualitative and quantitative process analysis techniques and redesign heuristics. Based on the textbook Fundamentals of Business Process Management by Dumas et al.
The Balance Scorecard: Presentation to the Institute of Electrical EngineersKinetik Solutions Ltd
The balanced scorecard is a crucial methodology for manufacturing managers to identify bottlenecks and exceptions in processes. It measures performance in financial, process, customer, and people areas to create a balanced and sustainable approach, rather than just focusing on targets. The scorecard is created by cross-functional teams and measures underlying drivers of performance like process velocity. It is reviewed regularly to focus on problem areas and drive process improvement through teams addressing the root causes of issues. Using a balanced scorecard approach frees up management time and empowers employees to make improvements.
The document discusses how business performance management (BPM) provides a framework for managing outsourced services through the use of key performance indicators (KPIs), service level agreements (SLAs), and a balanced business scorecard. BPM aims to create a real-time view of business performance similar to a medical EKG. It involves establishing objectives, defining processes and variables, setting performance targets in SLAs, and monitoring KPIs. The balanced scorecard considers financial, customer, HR, and operations metrics. A case study shows how applying BPM principles helped an insurance company improve claims processing.
Reconciliations Done Right: Automate and Scale Your Bank and Credit Card Reco...BlackLine
How “Modern Finance” processes add efficiency, control and visibility to your reconciliations
Bank and credit card reconciliations are a key control that companies rely on to ensure that their financial data is accurate and appropriate. While many ERP systems, including NetSuite, offer basic functionality to manage these reconciliations, they do not allow a true reconciliation to be performed. In addition, many processes remain manual, time-consuming, and error-prone including the:
- comparison of ERP account and transactional data with bank and credit card statements
- identification of uncashed checks, undeposited funds, chargebacks, unmatched transactions, or other exceptions
- routing of exceptions to proper personnel for investigation
- preparation and execution of reconciliations with standardized templates, attaching of supporting documentation, and approval workflows
The document discusses business process reengineering (BPR). It defines BPR as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements. The key is to focus on processes, not tasks or jobs. It outlines the 5 main activities of BPR: 1) Prepare for reengineering 2) Map and analyze the existing ("as-is") process 3) Design the new ("to-be") process 4) Implement the new process and 5) Continuously improve the process. It provides an example of how BPR was used to dramatically improve an insurance application approval process.
Process Improvement for Pabit SolutionsSnehal Datta
This document provides an overview of a project to improve customer onboarding processes at PABITSolutions Inc. It includes:
- Background on the company and issues with high customer abandonment rates during onboarding.
- An analysis of the current onboarding process which found issues like manual data entry, long wait times, and lack of coordination between departments.
- Solutions selected including a centralized onboarding database, 24/7 call centers, and more frequent quality checks.
- An implementation plan and hypotheses that the changes would reduce the average monthly abandonment rate to below 8 customers.
Finance Process Optimization - Mapping the Journey to High PerformanceStephen G. Lynch
The document discusses using the Six Sigma model to optimize finance processes, which includes 5 steps: define, measure, analyze, improve, and control processes to enhance service delivery, drive out costs, and deliver value to stakeholders. It provides details on each step, such as defining customers and requirements, measuring baseline metrics and costs, analyzing performance gaps against benchmarks, and prioritizing improvement opportunities based on factors like critical processes and inefficiency. The goal is to transform processes through the Six Sigma methodology to meet stakeholder expectations.
Critical Success Factors in a BPM ImplementationNathaniel Palmer
Doug Reynolds, president of AgilityPlus Solutions, gave a presentation on the critical success factors for a business process management implementation. He stated that long term success requires having a process repository, developing competence in methods and architecture, using agile technology, ensuring an excellent transition, and implementing measurements. Traditional approaches to performance improvement like downsizing, automation, and restructuring are similar to other initiatives, but BPM also emphasizes the role of technology systems in supporting business processes.
This document discusses business process reengineering (BPR). It begins by explaining that core business processes can become complex and inefficient over time, adding unnecessary costs. BPR aims to radically redesign these processes to optimize costs and enhance profits. The document then provides a brief history of BPR, outlines some common BPR methodologies, and describes the key phases of the McKinsey BPR methodology in particular - including defining the scope, redesigning the process, and piloting the new design. Information technology is discussed as playing a key enabling role in BPR initiatives.
Kick-Starting Digital Transformation: Four IT StrategiesCognizant
For IT organizations, digital transformation can be an especially daunting task. Keeping up with and managing ever-evolving technologies and applications entails four essential components that help accelerate time to market, minimize project risk; automate and handle thousands of requirements, enrich collaboration and manage costs.
Internal controls should be built into business processes rather than added onto them. Internal auditing helps evaluate risk management, control, and governance processes to improve an organization's operations. It involves analyzing key processes and controls, evaluating control adequacy, testing compliance, and recommending improvements. The benefits of internal auditing include correct financial figures, timely work completion, and fraud detection.
Business process management (BPM) is the discipline of improving a business process from end to end by analyzing it, modelling how it works in different scenarios, executing improvements, monitoring the improved process and continually optimizing it.
Fundamentals of Business Process Management - Tutorial at CAiSE'2018Marlon Dumas
Slides of the tutorial "Fundamentals of BPM: Fifty Years of BPM Teaching Distilled" delivered at the 30th International Conference on Advanced Information Systems Engineering (CAiSE'2018) in Tallinn, Estonia, 13 June 2018. https://caise2018.ut.ee/
Predicting the Customer Experience: A Convergence of Business Process, Deci...Nathaniel Palmer
This document discusses business process management (BPM) and operational decision management (ODM). It provides background on Nathaniel Palmer, an expert in BPM, and defines BPM. It then discusses the evolution of BPM from early automation to today's data-driven processes. It argues that BPM and ODM can help organizations act sooner by reducing latency in responding to business events. Finally, it provides advice on developing a BPM strategy, including focusing on growth metrics, engaging customers, and starting with the right initial processes.
This PPT deck displays thirtyseven slides with in depth research. Our Bpm Powerpoint Presentation Slides presentation deck is a helpful tool to plan, prepare, document and analyse the topic with a clear approach. We provide a ready to use deck with all sorts of relevant topics subtopics templates, charts and graphs, overviews, analysis templates. Outline all the important aspects without any hassle. It showcases of all kinds of editable templates infographics for an inclusive and comprehensive Bpm PowerPoint Presentation Slides presentation. Professionals, managers, individual and team involved in any company organization from any field can use them as per requirement.
BPA, BPI, BPM ... We’ve rounded up some of the most-often-used words, phrases and acronyms in the business process outsourcing industry and put them together in a BPO Glossary.
The document discusses several topics related to business process reengineering and IT solutions. It describes key indicators that an IT vendor solution may be best for implementing business process reengineering, such as dysfunctionality in the current system. It also discusses the key strengths of service-oriented architectures for modern businesses, including modularity, reusability, and self-contained services. Additionally, it describes how tools like environmental analysis, SWOT analysis, value chain analysis, and business strategy choice can influence business process reengineering and provides examples. Standards for measuring organizational performance and information systems functions are also rated.
Business Process-Reengineering BPR MoghimiBahman Moghimi
The document outlines a presentation on business process reengineering (BPR). It begins with an introduction to BPR and defines it as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in performance metrics. It then discusses various levels of change an organization can undergo from automation to reengineering. The rest of the presentation covers key aspects of implementing a BPR strategy such as selecting processes and teams, understanding the current process, developing a vision for improved processes, identifying action plans, and addressing challenges and IT benefits.
Introduction to Business Process Analysis and RedesignMarlon Dumas
Special course on business process analysis and design delivered at University of Granada on 23-24 January 2014. The course covers qualitative and quantitative process analysis techniques and redesign heuristics. Based on the textbook Fundamentals of Business Process Management by Dumas et al.
The Balance Scorecard: Presentation to the Institute of Electrical EngineersKinetik Solutions Ltd
The balanced scorecard is a crucial methodology for manufacturing managers to identify bottlenecks and exceptions in processes. It measures performance in financial, process, customer, and people areas to create a balanced and sustainable approach, rather than just focusing on targets. The scorecard is created by cross-functional teams and measures underlying drivers of performance like process velocity. It is reviewed regularly to focus on problem areas and drive process improvement through teams addressing the root causes of issues. Using a balanced scorecard approach frees up management time and empowers employees to make improvements.
The document discusses how business performance management (BPM) provides a framework for managing outsourced services through the use of key performance indicators (KPIs), service level agreements (SLAs), and a balanced business scorecard. BPM aims to create a real-time view of business performance similar to a medical EKG. It involves establishing objectives, defining processes and variables, setting performance targets in SLAs, and monitoring KPIs. The balanced scorecard considers financial, customer, HR, and operations metrics. A case study shows how applying BPM principles helped an insurance company improve claims processing.
Reconciliations Done Right: Automate and Scale Your Bank and Credit Card Reco...BlackLine
How “Modern Finance” processes add efficiency, control and visibility to your reconciliations
Bank and credit card reconciliations are a key control that companies rely on to ensure that their financial data is accurate and appropriate. While many ERP systems, including NetSuite, offer basic functionality to manage these reconciliations, they do not allow a true reconciliation to be performed. In addition, many processes remain manual, time-consuming, and error-prone including the:
- comparison of ERP account and transactional data with bank and credit card statements
- identification of uncashed checks, undeposited funds, chargebacks, unmatched transactions, or other exceptions
- routing of exceptions to proper personnel for investigation
- preparation and execution of reconciliations with standardized templates, attaching of supporting documentation, and approval workflows
The document discusses business process reengineering (BPR). It defines BPR as the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements. The key is to focus on processes, not tasks or jobs. It outlines the 5 main activities of BPR: 1) Prepare for reengineering 2) Map and analyze the existing ("as-is") process 3) Design the new ("to-be") process 4) Implement the new process and 5) Continuously improve the process. It provides an example of how BPR was used to dramatically improve an insurance application approval process.
Process Improvement for Pabit SolutionsSnehal Datta
This document provides an overview of a project to improve customer onboarding processes at PABITSolutions Inc. It includes:
- Background on the company and issues with high customer abandonment rates during onboarding.
- An analysis of the current onboarding process which found issues like manual data entry, long wait times, and lack of coordination between departments.
- Solutions selected including a centralized onboarding database, 24/7 call centers, and more frequent quality checks.
- An implementation plan and hypotheses that the changes would reduce the average monthly abandonment rate to below 8 customers.
Finance Process Optimization - Mapping the Journey to High PerformanceStephen G. Lynch
The document discusses using the Six Sigma model to optimize finance processes, which includes 5 steps: define, measure, analyze, improve, and control processes to enhance service delivery, drive out costs, and deliver value to stakeholders. It provides details on each step, such as defining customers and requirements, measuring baseline metrics and costs, analyzing performance gaps against benchmarks, and prioritizing improvement opportunities based on factors like critical processes and inefficiency. The goal is to transform processes through the Six Sigma methodology to meet stakeholder expectations.
Critical Success Factors in a BPM ImplementationNathaniel Palmer
Doug Reynolds, president of AgilityPlus Solutions, gave a presentation on the critical success factors for a business process management implementation. He stated that long term success requires having a process repository, developing competence in methods and architecture, using agile technology, ensuring an excellent transition, and implementing measurements. Traditional approaches to performance improvement like downsizing, automation, and restructuring are similar to other initiatives, but BPM also emphasizes the role of technology systems in supporting business processes.
This document discusses business process reengineering (BPR). It begins by explaining that core business processes can become complex and inefficient over time, adding unnecessary costs. BPR aims to radically redesign these processes to optimize costs and enhance profits. The document then provides a brief history of BPR, outlines some common BPR methodologies, and describes the key phases of the McKinsey BPR methodology in particular - including defining the scope, redesigning the process, and piloting the new design. Information technology is discussed as playing a key enabling role in BPR initiatives.
Kick-Starting Digital Transformation: Four IT StrategiesCognizant
For IT organizations, digital transformation can be an especially daunting task. Keeping up with and managing ever-evolving technologies and applications entails four essential components that help accelerate time to market, minimize project risk; automate and handle thousands of requirements, enrich collaboration and manage costs.
The document discusses the quote-to-cash (Q2C) business process for life science organizations. It describes the three phases of the Q2C process: quote/contract, revenue recognition, and cash. It outlines common pitfalls that organizations face in each phase, such as failing to consider customer data in pricing analyses. It recommends taking an end-to-end view of the process and addressing pitfalls through standard workflows, documentation, separation of duties, and cross-functional collaboration to improve efficiency, compliance, and profitability.
Fast Close: The Why and How of a faster month end close. Making the business case for a faster month end close, and linking it to finance transformation. Use process optimisation techniques and six sigma to help finance become more influential. Delivered at CPA Australia Management Accounting Conference 2015
Too many bank processes rely on manual labor, but some banks are experimenting with rapid automation approaches to reduce costs. By reworking IT architecture, banks can automate complex tasks and activities requiring human intervention. To succeed, banks must prioritize processes for simplification and automation, use multiple integration technologies in IT solutions, and prepare IT departments for agile development methods. Successful large-scale automation requires understanding value drivers, carefully designing operating models and IT architecture, and sequencing initiatives with a business case.
Business Improvement initiatives are getting a lot of press these days: “..our projects saved over $10M in the first 12 months of deployment using BPM” . It seems logical for an organization to jump onto the process improvement bandwagon. Much is promised of business improvement efforts, and there are many capable consultants and companies willing to support a company’s BPM deployment that can last months to years. But how does an organization know that the business improvement efforts will really result in a quantifiable benefit to the business? Process improvement initiatives are not inexpensive to start or sustain over many years, and most executives require the clear identification of benefits to justify the expenditure of training resources and driving project work before approving a long-term initiative.
Transforming Finance and Accounting to Optimize Financial CloseCognizant
Many firms are working to accelerate and improve the daily financial close, but are far from ready. By formalizing the F&A value chain, modernizing and strengthening their F&A platform, assessing and optimizing existing service models and heightening overall F&A governance, companies can achieve this goal, supported by a set of success factors for measuring progress and aligning transformation activities.
Business Process Re-Engineering by ADITI WALIAAditi Walia
For the first time ever, this presentation on BPR has a wide coverage of so many topics regarding BPR, it includes not only definition + issues affecting BPR + about core processes of business + history about BPR + General Model + Role of IT in BPR + its objectives + Outcomes as well as problems related to BPR in a very simple and fluent manner along with interactive diagrams and figures so as to aid even the naive or first time reader.
Quantum Associates, Inc has combined some of the principles of Agile and Lean to help deliver business process improvements quickly. Our approach uses teamwork and some of the lean tools to identify and eliminate non-value-added process steps within the agile framework of chunking the prioritized improvements in short time periods (2 to 4 weeks). Your team's focus is on developing solutions to process problems and deploying them quickly. Team collaboration, the focus on removing non-value-added steps/ quick deployment and the agile framework leads to a big impact in your organization, and therefore to increased organizational performance and business results.
Learn how two powerful concepts, Lean and Agile, can improve your company's performance and business results.
The big takeaway is improving processes using lean principles in an agile framework to reap the benefits of eliminating waste and quickly executing the improvements.
Business process management (BPM) involves systematically managing and improving a company's workflow and business processes. The goal of BPM is to reduce errors, improve efficiency and adapt to changes. It involves modeling processes, executing them using software, monitoring performance, and optimizing processes. BPM can improve process quality, operational efficiency, customer satisfaction and business agility. Key aspects of BPM include process design, modeling, execution, monitoring and optimization.
This white paper discusses implementing a service management solution through integrating people, processes, and technology based on the ITIL framework. ITIL defines key processes for service support and service delivery that can be automated and managed through tools to help IT function as a valued business partner. The paper outlines the critical ITIL processes and stresses that implementing tools alone is not sufficient - processes must be in place and tools selected to support defined processes for the organization to realize benefits.
From 'Zero Defect Software' to 'First Time Right with Business'Cognizant
Quality Assurance (QA) departments now need to go beyond zero defect software delivery to encompass both IT and business requirements through end-to-end testing protocols. Representing a true step change for IT organizations, business process assurance entails a blend of analytics-driven Business Process Testing (BPT) and User Acceptance Testing (UAT).
Capital markets: The impact of business process operations improvementsGenpact Ltd
While Lean Six Sigma techniques reliably contribute to operational excellence, they do not necessarily identify the full impact of business process improvement programs. Specifically for Six Sigma, there has been reason for much criticism in the past. This article uses a real-life case related to the enhancement of a Capital Markets global business service delivery operation, and describes how to engage “client” and “delivery” executives in order to tightly align technical project execution with business strategy.
The document discusses how quality initiatives like Six Sigma and Total Quality Management can provide useful tools and concepts for IT service management even when the full implementations of those initiatives fail. It highlights how Yahoo spent years optimizing the wrong parts of its system without understanding users' needs. Six Sigma concepts like defining processes, understanding critical quality factors, and calculating the costs of poor quality could help IT organizations better implement ITIL and improve services. The document then explains several key Six Sigma tools - Voice of the Customer, SIPOC, CTQ, COPQ, and CONC - that can be useful for ITSM practitioners.
This document outlines a 5-step methodology for implementing business process reengineering (BPR). The steps are: 1) Developing a process vision and objectives, 2) Defining the processes to reengineer, 3) Understanding and measuring existing processes, 4) Identifying IT levers, and 5) Designing and building a prototype. The methodology focuses on understanding current processes, creating a vision for improved processes, identifying how IT can help, and testing changes through prototypes before full implementation.
How to Optimize Deal Value in M&A Integrations with O2C AutomationEmagia
How to Optimize Deal Value in M&A Integrations with O2C Automation
https://www.emagia.com/resources/ebooks/how-to-optimize-deal-value-in-ma-integrations-with-order-to-cash-o2c-automation/
There are many different versions of a process, depending on your perception of the overall procedure.
For example, what the manual says will happen is going to often be a world apart from what the manager thinks happens, and what really happens.
With this in mind, it is vital to understand the procedures in place.
If you don’t understand what your process is, how will you manage it?
After all, process quality is what differentiates world class businesses from the rest.
By delving deeply into customer experience, business process design and operating model change, organizations can more effectively move from 'doing' digital to 'being’ digital.
BASIS Quality Forum Presents
“Poor Business Analysis -The Culprit of IT project Failure”
The Problem Statement
Statistics on Project success rate
Finding the reason : the Culprit
The solutions
The stakeholders role
Ecosystem of a successful Project
Webinar: How Tax Preparers & Accountants Can Increase Their Profitability Usi...GoLeanSixSigma.com
Tax return preparation is increasingly becoming a commodity. Automation can help reduce the level of manual work required for return preparation, but if you automate a “bad process” you still won’t see an increase in profitability or improved client service.
Tax practices should apply Lean Six Sigma (LSS) before automating their tax workflows to optimize processes and automation, while still remaining in compliance with professional standards.
Attend this webinar and you’ll learn how to:
- Apply Lean Six Sigma to tax workflow
- Combine tax automation with value pricing
- Increase your practice’s profitability
Similar to Optimizing Outcome-Driven Change: It's About the Process, Not the Technology (20)
Using Adaptive Scrum to Tame Process Reverse Engineering in Data Analytics Pr...Cognizant
Organizations rely on analytics to make intelligent decisions and improve business performance, which sometimes requires reproducing business processes from a legacy application to a digital-native state to reduce the functional, technical and operational debts. Adaptive Scrum can reduce the complexity of the reproduction process iteratively as well as provide transparency in data analytics porojects.
Data Modernization: Breaking the AI Vicious Cycle for Superior Decision-makingCognizant
The document discusses how most companies are not fully leveraging artificial intelligence (AI) and data for decision-making. It finds that only 20% of companies are "leaders" in using AI for decisions, while the remaining 80% are stuck in a "vicious cycle" of not understanding AI's potential, having low trust in AI, and limited adoption. Leaders use more sophisticated verification of AI decisions and a wider range of AI technologies beyond chatbots. The document provides recommendations for breaking the vicious cycle, including appointing AI champions, starting with specific high-impact decisions, and institutionalizing continuous learning about AI advances.
It Takes an Ecosystem: How Technology Companies Deliver Exceptional ExperiencesCognizant
Experience is becoming a key strategy for technology companies as they shift to cloud-based subscription models. This requires building an "experience ecosystem" that breaks down silos and involves partners. Building such an ecosystem involves adopting a cross-functional approach to experience, making experience data-driven to generate insights, and creating platforms to enable connected selling between companies and partners.
Intuition is not a mystery but rather a mechanistic process based on accumulated experience. Leading businesses are engineering intuition into their organizations by harnessing machine learning software, massive cloud processing power, huge amounts of data, and design thinking in experiences. This allows them to anticipate and act with speed and insight, improving decision making through data-driven insights and acting as if on intuition.
The Work Ahead: Transportation and Logistics Delivering on the Digital-Physic...Cognizant
The T&L industry appears poised to accelerate its long-overdue modernization drive, as the pandemic spurs an increased need for agility and resilience, according to our study.
Enhancing Desirability: Five Considerations for Winning Digital InitiativesCognizant
To be a modern digital business in the post-COVID era, organizations must be fanatical about the experiences they deliver to an increasingly savvy and expectant user community. Getting there requires a mastery of human-design thinking, compelling user interface and interaction design, and a focus on functional and nonfunctional capabilities that drive business differentiation and results.
The Work Ahead in Manufacturing: Fulfilling the Agility MandateCognizant
Manufacturers are ahead of other industries in IoT deployments but lag in investments in analytics and AI needed to maximize IoT's benefits. While many have IoT pilots, few have implemented machine learning at scale to analyze sensor data and optimize processes. To fully digitize manufacturing, investments in automation, analytics, and AI must increase from the current 5.5% of revenue to over 11% to integrate IT, OT, and PT across the value chain.
The Work Ahead in Higher Education: Repaving the Road for the Employees of To...Cognizant
Higher-ed institutions expect pandemic-driven disruption to continue, especially as hyperconnectivity, analytics and AI drive personalized education models over the lifetime of the learner, according to our recent research.
Engineering the Next-Gen Digital Claims Organisation for Australian General I...Cognizant
The document discusses potential future states for the claims organization of Australian general insurers. It notes that gradual changes like increasing climate volatility, new technologies, and changing customer demographics will reshape the insurance industry and claims processes. Five potential end states for claims organizations are described: 1) traditional claims will demand faster processing; 2) a larger percentage of claims will come from new digital risks; 3) claims processes may become "Uberized" through partnerships; 4) claims organizations will face challenges in risk management propositions; 5) humans and machines will work together to adjudicate claims using large data and computing power. The document argues that insurers must transform claims through digital technologies to concurrently improve customer experience, operational effectiveness, and efficiencies
Profitability in the Direct-to-Consumer Marketplace: A Playbook for Media and...Cognizant
Amid constant change, industry leaders need an upgraded IT infrastructure capable of adapting to audience expectations while proactively anticipating ever-evolving business requirements.
Green Rush: The Economic Imperative for SustainabilityCognizant
Green business is good business, according to our recent research, whether for companies monetizing tech tools used for sustainability or for those that see the impact of these initiatives on business goals.
Policy Administration Modernization: Four Paths for InsurersCognizant
The pivot to digital is fraught with numerous obstacles but with proper planning and execution, legacy carriers can update their core systems and keep pace with the competition, while proactively addressing customer needs.
The Work Ahead in Utilities: Powering a Sustainable Future with DigitalCognizant
Utilities are starting to adopt digital technologies to eliminate slow processes, elevate customer experience and boost sustainability, according to our recent study.
AI in Media & Entertainment: Starting the Journey to ValueCognizant
Up to now, the global media & entertainment industry (M&E) has been lagging most other sectors in its adoption of artificial intelligence (AI). But our research shows that M&E companies are set to close the gap over the coming three years, as they ramp up their investments in AI and reap rising returns. The first steps? Getting a firm grip on data – the foundation of any successful AI strategy – and balancing technology spend with investments in AI skills.
Operations Workforce Management: A Data-Informed, Digital-First ApproachCognizant
As #WorkFromAnywhere becomes the rule rather than the exception, organizations face an important question: How can they increase their digital quotient to engage and enable a remote operations workforce to work collaboratively to deliver onclient requirements and contractual commitments?
Five Priorities for Quality Engineering When Taking Banking to the CloudCognizant
As banks move to cloud-based banking platforms for lower costs and greater agility, they must seamlessly integrate technologies and workflows while ensuring security, performance and an enhanced user experience. Here are five ways cloud-focused quality assurance helps banks maximize the benefits.
Getting Ahead With AI: How APAC Companies Replicate Success by Remaining FocusedCognizant
Changing market dynamics are propelling Asia-Pacific businesses to take a highly disciplined and focused approach to ensuring that their AI initiatives rapidly scale and quickly generate heightened business impact.
The Work Ahead in Intelligent Automation: Coping with Complexity in a Post-Pa...Cognizant
Intelligent automation continues to be a top driver of the future of work, according to our recent study. To reap the full advantages, businesses need to move from isolated to widespread deployment.
The Work Ahead in Intelligent Automation: Coping with Complexity in a Post-Pa...
Optimizing Outcome-Driven Change: It's About the Process, Not the Technology
1. Optimizing Outcome-Driven Change:
It’s About the Process, Not the Technology
The fundamental principle for achieving desired outcomes and user
satisfaction is a recognition that technology is just one of the levers
that can be pulled to create more efficient and effective processes.
Executive Summary
No business can afford IT initiatives that don’t
deliver significant improvements in business
performance. Yet a 2012 McKinsey study revealed
that 17% of lT projects miss the mark so badly
that their failure threatens the company’s very
existence. Further, large IT projects (budget
exceeding $15M) deliver 56% less value than
predicted.1
While IT enablement, digitization and automa
tion remain critical elements for implementing
processes that are more cost-effective and bring
greater value, technology can only produce
benefits if an organization fully understands its
existing processes’ pain points and how to rectify
them.
This white paper lays out a clear approach for
optimizing a business process prior to digiti
zation — helping to ensure that the digitization
effort leads to significant improvement in the
business process and a clear and quantifiable
return on investment.
Why IT-Driven Transformation Fails
Too often, organizations embark on automation
and/or digitization strategies before they have
completely dissected the deficient process, and
identified precise pain points and their causes. In
these situations, digitization and/or automation
can become ends in themselves. Typically, they
are not.
To deploy technology effectively, it is necessary
- for companies to take a comprehensive, struc-
tured approach to understanding what activities,
data, workflows, training, etc., must change in
order for a transformed process to deliver the
desired results.
By clearly defining and deconstructing inefficient
processes, organizations can begin to reconstruct
them — helping to ensure that new digitization
- and automation initiatives bring the best out-
comes from their investment and avoid failure
(see Figure 1, next page).
• Cognizant 20-20 Insights
cognizant 20-20 insights | may 2015
2. cognizant 20-20 insights 2
When technology becomes the focal point of a
transformation initiative, organizations often fail
to do their basic homework, such as gathering
insights from business users, which is neces-
sary in order to fully understand why a process
is ineffective. Without this intelligence, it’s all
too easy for them to simply automate existing
inefficiencies.
Lean philosophy methodology (applied from
the Toyota Production System) posits that three
elements exist within any business process:
non-value-added activities, value-added activi-
ties and value-enabling activities. In the book
Staying Lean — Thriving, Not Just Surviving, the
authors state that research shows that any
business process is comprised of 49% to 60%
non-value-added activities and 35% to 50%
value-enabling activities. Hence, value-added
activities only make up 1% to 5% of a process.2
An organization must take the time to identify
value-added vs. non-value-added elements in a
process targeted for transformation. If not, the
automation or digitization of that process typi-
cally leads to non-value-added activities that
continue to exist in the process, albeit in an auto-
mated fashion. So a step that actually qualifies as
“waste” would not be eliminated, but automated
— likely contributing to end-user frustration and
disappointing efficiency gains.
To achieve true transformation, processes should
be assessed and optimized/reengineered before
turning attention to IT enablement. Through a
structured process-reengineering exercise using
Lean and Six Sigma tools, non-value-added ele-
ments can be identified and eliminated to the
greatest extent possible, which can subsequently
improve the efficiency of value-enabling and val-
ue-added activities
For example, in the accounts payable/invoice pro-
cess, many organizations require multiple levels
of approval to initiate payments to vendors. When
that process is automated, requests for approv-
al are automatically granted, according to an
approval matrix. However, if the existing pro-
Dearth of end user insight
Lack of impact assessment of business processes
Lack of measurable success criteria
Undefined goals and objectives
Inadequate or vague requirements
Key Reasons for IT-Driven Project Failures
Figure 1
3. cognizant 20-20 insights 3
cess is analyzed before it is automated, it would
become clear that:
• The process requires approvals for invoices
submitted against pre-approved purchase
orders. This step adds no value.
• Approvals are required for all invoices,
regardless of their amounts. The value added
is minimal compared to the extra time required
for the approvals.
Ideally, this process should be redesigned to elim-
inate approvals for PO-based invoices. Further,
the approval matrix should be restructured so
that approvals are sought only for invoices above
a certain value. These steps would streamline the
process before it is digitized.
Re-engineering Before Automating:
A Structured Approach
Described below (abbreviated later as DCBA) is
a straightforward approach for identifying the
value-added and enabling process components,
and defining outcomes to ensure they inform the
transformation initiative. The steps include:
• Defining business objectives.
• Conducting current-state assessment.
• Building the future-state process.
• Assimilating process changes into business
requirements.
DCBA is a structured methodology organiza-
tions can use to assess and redesign any business
process before it’s automated. It stresses the
importance of outcomes-based transformation
and ensures that objectives are clearly laid out,
with quantitative performance measures in place
to gauge success. Business user involvement and
input are critical throughout DCBA to ensure the
solution is comprehensively defined.
Defining Business Objectives
The first stage in the DCBA approach is to deter-
mine the purpose of automating a specific process
or the steps within it. To do this, leaders of trans-
formation initiatives must:
• Determine the objective and related perfor-
mance indicator(s)/metrics. Project sponsors,
business owners and other key stakeholders
should be interviewed to define and reach
agreement on the objectives of the transfor-
mation initiative. The underlying principle here
is that automation is not an end in itself; rather,
it should be evaluated as a means for achieving
the desired objectives.
• Typical objectives could be to:
>> Make the process faster/quicker ¬ TAT (turn-
around time3
) reduction.
>> Make the process better ¬ Error reduction.
>> Make the process “cost effective” ¬ Cost re-
duction.
>> Make the process less risky ¬ Risk reduction.
>> Make the process easier/simpler ¬ End-user
satisfaction (the end user could be a busi-
ness user or end client).
Multiple objectives for an initiative may
require multiple performance indicators. In
the accounts payable process we examined,
objectives could include faster invoice pro-
cessing and elimination of duplicate payments,
for example.
• Define a target/goal for each performance
indicator/metric. Once the focus metrics
are defined, set a quantifiable target, such as
“reduce TAT by 25%.” The success of the entire
initiative can then be determined based on
achieving these objectives.
Historical performance data should be
assessed to define the current baseline.
Targets can be set for improvement against
this baseline. Industry benchmarks can also be
leveraged as a guideline. For instance, the 2013
Aberdeen e-Payables: Payment Automation for
Operational Excellence Survey showed that
best-in-class (top 20%) organizations took 3.7
days to process an invoice, whereas the indus-
try average is around 8.8 days.4
Given the broad goal of faster invoice process-
ing, the target could be to complete invoice
processing within 10 days of receipt of an
invoice. An alternate target might aim to
ensure that at least 90% of the invoices are
processed within 10 days of receipt.
Conducting the Current State Assessment
The second step in the DCBA methodology is to
assess the end-to-end process to identify improve-
ment areas. A variety of tools and methodologies,
including Six Sigma and Lean principles, can be
applied here.
This phase entails the following:
• High-level and detailed process mapping. A
high-level process map captures the key steps
in the process. Figure 2, next page, illustrates
the steps that represent our accounts payable
process.
4. cognizant 20-20 insights 4
A detailed process map is then prepared through
workshops with business users to capture the fol-
lowing information:
• Sequence of steps/activities.
• Time taken at each step.
• Volume details.
• Details of departments/roles involved in the
end-to-end process.
• Overall turnaround time.
Figure 3 below presents a comprehensive picture
of the end-to-end process.
• Process assessment. The end-to-end process
should then be analyzed to identify scope for
improvement. Process assessment is done
across two dimensions:
>> Process analysis. Organizations can use
Lean value stream mapping to identify non-
value-added steps in collaboration with busi-
ness users.
Evaluate Discount
and Publish
Approve & Authorize
Payment Cycle
Reconcile
Payment
Payment
Start
Stop
Invoice
Data Entry
Invoice
Verification
Stepping Through the Accounts Payable Process
Figure 2
Start
Receive Invoice
Volume:
X Thousand
(X minutes)
Mailroom
Multi-Level
Approval Process
Yes
No
Match?
Y%
of Total Volume
A%
of Total Volume
X%
of Total Volume
B%
of Total Volume
Transform/Store
Invoice Details
Return Invoice
Exception
Claim Processing
Send Acknowledgment
(X minutes)
Inspect for Complete
Details & Compliance
Department Managers
& Finance Approvals
Check for
Discounts Applied
Three-Way
Matching
Yes
No
End
End
(X minutes)
(X minutes) (X minutes)
(X minutes)(X minutes)
(X minutes)
(X minutes)
Confirm
Entitlement
to Pay
Verify Payee
Information Against
the Vendor Master
Prepare & Schedule
Payment Cycle
Process Vendor
Payment
Reconcile
& Report
Process Mapping: A Holistic Journey
It’s critical to create an extremely detailed process map to understand all the potential outcomes for an invoice,
including all the users and other processes and systems touched by it. Such mapping helps reveal bottlenecks, non-
value-added activities, and potential effects of process changes on users and other workflows.
Figure 3
5. cognizant 20-20 insights 5
In a value stream mapping workshop, busi-
ness users from various teams that participate
in the end-to-end process objectively assess
every step of the process to gauge wheth-
er it adds value and whether it is performed
in the most efficient manner. Rework, delays,
waiting time, excess inventory and over-pro-
cessing are typical “wastes” found in a process.
All improvement areas are highlighted using
Kaizen bursts.5
Figure 4 above represents a sample value
stream map.
• Data analysis. This involves assessing
historical process performance data to identify
trends/variation sources. Past data covering
transactional volumes, invoice processing time
per region, incomplete invoices by vendors,
duplicate invoices, etc., should be studied in
great detail in order to arrive at key sources of
variation and identify areas for improvement. A
few vendors may be responsible for a majority
of incomplete, inaccurate and/or duplicate
invoices. In these cases, a pre-defined template
could be shared with these vendors to ensure
they provide all details tagged as “mandatory.”
An online portal for invoice submission can
also resolve this problem.
When the current-state assessment phase is
complete, the organization will have a detailed
list of areas for improvement throughout the
process.
Building a Future-State Process
The third stage in the DCBA methodology is to
design a future-state process that addresses all
the identified improvement areas for achieving
Start
Receive Invoice
Multiple formats and multiple channels
for invoice receipt require mailroom services
Distributed information and
manual verification
Not cataloged and integrated, may
result in repetition and duplication
Manual activity and lack
of SLA-resulting follow-ups
Stakeholders not
updated on status
Inconsistent manual review of line
items from order, delivery, pricing
Lack of knowledge base per vendor, products
and amounts. No visibility into cap maximization
Multi-Level
Approval Process
Yes
No
Match?
Transform/Store
Invoice Details
Return Invoice
Exception
Claim Processing
Inspect for Complete
Details & Compliance
Send
Acknoweldgment
Department Managers
& Finance Approvals
Check for
Discounts Applied
Three-Way
Matching
Yes
No
End
End
Confirm
Entitlement
to Pay
Verify Payee
Information Against
the Vendor Master
Prepare & Schedule
Payment Cycle
Process Vendor
Payment
Reconcile
& Report
Time-consuming, inconsistent and ad-hoc
processing results in late payment and fees
Manual, early or
delayed payments
Average TAT of 32 Days
Finding Value in the Process Stream
A typical value stream map uses various symbols (Language of Lean) to depict inventory, operators, work cells, etc., and
capture details of time and inventory at each step. For ease of representation, we have used process mapping symbols and
Kaizen bursts alone in this VSM depiction.
Figure 4
6. cognizant 20-20 insights 6
more efficient and effective performance, per the
identified metrics. This phase entails:
• Improvement recommendations. All improve-
ment areas should be assessed in greater
detail; brainstorming with business teams can
lead to solutions/ideas to overcome key pain
areas (see Figure 5). In our accounts payable
example, if the approval process is tedious and
has been identified as needing improvement,
the team could brainstorm ways to simplify this.
Multiple tiers of approval could be introduced
based on invoice value. Then, only high-value
invoices would require senior management
approval, thus assuring faster turnaround.
• Creation of a detailed “to be” process map.
This process map will highlight the process and
technology changes necessary to optimize
it. Simulation tools (for instance, ProModel or
SIMUL8) should be deployed during this phase
to gauge the impact of these changes on overall
process performance. A process simulator can
help define the impact of suggested process
changes. If the future-state process design
eliminates a few steps, the simulator calculates
the overall impact of this action on end-to-end
turnaround time and resource requirements.
This enables stakeholders to envision the ben-
efits of the proposed future state and helps win
their commitment and sponsorship. In many
cases, business users are neither engaged in
the analysis of current processes nor in the
design of future-state processes. So when
they are required to migrate to a new process,
they typically show strong resistance. That’s
why the DCBA approach places great empha-
sis on involving the business in every step of
the transformation journey (see Figure 6, next
page).
Assimilation of Process Changes into IT
Business Requirements
The final step in the DCBA structure focuses on
mapping the process changes to the business
requirements. This involves creating the busi-
ness requirements document with details of the
revised process.
In the accounts payable example, the future-state
process recommends automated invoice verifica-
tion. In this case, parameters must be defined and
databases identified to enable verification. Rules
may need to be defined to specify a course of
action in case voice verification fails.
Automate invoice mailroom
services through OCR with
business rules.
Standardize invoice formats in
collaboration with vendor
teams; enable online invoice
submission.
Introduce an online, rule-driven
workflow tool to streamline
approvals, returns, automatic
invoice posting and exception
processing.
Harmonize PO and vendor
master data to improve
extraction rate and auto-posting
of invoices.
Technology
Improve accuracy of the vendor
master database.
Define standard operating
procedures for internal usage
and for vendors.
Define a prioritization matrix
for invoice payment.
Improve coordination between
various teams/parties involved
in the process (vendors,
accounts payable, accounts
receivable and finance teams).
Process
Study effectiveness of resource
alignment by vendor/invoice
type and simplify as necessary.
Train resources on standard
operating procedures and
monitor adherence.
Study past performance to
identify sources of variation
and ensure consistency in
performance/output across
the entire team.
People
Sample Cross-Team Brainstorming Agenda
Examples of solutions user teams could brainstorm to improve accounts payable.
Figure 5
7. cognizant 20-20 insights 7
These detailed requirements then become the
basis for the IT design documents the software
development lifecycle follows. At this point, the
transformation team must determine the extent
of customization and the development effort nec-
essary to align the technology deployment to the
future-state process.
Looking Ahead: Focus on Outcomes First
The outcomes-driven approach to transforma-
tion not only results in a more robust IT design
and smoother implementation, but also contrib-
utes to overall program success through intense
end-user involvement, greater commitment and
sponsorship, and empirical assessment of its
impact on the business. Defining key success
factors, base-lining and target-setting before
deploying any technolotgy helps in assessing and
projecting the impact of the project (see Figure 7,
next page).
The insights uncovered by the DCBA structure
create a strong business case, and help ensure
that supporting automation and digital technolo-
gies directly address specific pain points. In this
way, a reengineered process can truly operate
better and deliver more value to its users, inside
and outside the company. That’s an outcome that
reflects well on an organization’s IT professionals.
Holistic Process Change
The “to be” process map captures the workflow, human and technology changes necessary for
optimal process transformation.
Figure 6
Emails/Uploads
scanned invoice
to portal against
the PO
Mails acknowledgment
& original/updated
invoice
OCR, extract &
capture defined
field data
Business rules
validate accuracy
& data against PO &
receipt
Rule-driven workflow
routes for approval
Checks for
duplicates
Integrated system
displays vendor data,
discounts & past
invoices
Discounts
applicable
System verifies
payment cycles,
evaluates JIT
payment
System employs
integrated ERP & BPM
setup entitlement &
payment
Mail detail
to vendors
Acknowledgment
with unique ID
(barcode), one per PO
Manual
review
Manual
review
Collaborate &
Resolve
NO
YES
Vendor
Vendor
System initiates
payment on correct
date
Auto
reconciliation
Sort, catalog &
store for reference
Mailroom
Detailed
inspection:
REJECTS
APPROVED?
APPROVED?
Match
8. cognizant 20-20 insights 8
The key to achieving this and other outcomes-
driven transformations is making sure that
technology is always a means, never an end in
itself. Focus on outcomes first; the technology
will follow.
To create a strong base for outcomes-driven
transformation, organizations need to:
• Evaluate every IT project/spend against the
business impact/benefit it would create.
• Involve key business/process owners
throughout the prioritization and execution of
IT projects to ensure their support and collabo-
ration.
• View the time and effort recommended by this
approach as an investment and indemnity to
keep failure at bay and ensure that IT projects
deliver true business value.
Footnotes
1
McKinsey & Co. “Delivering Large-Scale IT projects on Time, on Budget, and on Value.” October, 2012.
http://www.mckinsey.com/insights/business_technology/delivering_large-scale_it_projects_on_time_on_
budget_and_on_value#sthash.IIqZB8xs.dpuf.
2
Peter Hines, Pauline Found, Gary Griffiths and Richard Harrison. “Staying Lean, Thriving not Just
Surviving.” Lean Enterprise Research Center. Cardiff University, 2008. http://www.amazon.co.uk/
Staying-Lean-Thriving-Just-Surviving/dp/0953798291.
3
TAT is the period for completing a process cycle (such as repair or replacement of a component or
equipment), commonly expressed as an average of previous such periods. Read more at: http://www.busi-
nessdictionary.com/definition/turnaround-time.html#ixzz3UkQVyjHk.
4
From the Global Exchange Group white paper, “Automating Accounts Payable — Leaving the Paper Jam
Behind,” page 3. Aberdeen, 2013. “e-Payables: Payment Automation for Operational Excellence Survey.”
Published by Aberdeen. https://www.gexchange.com/pdf/GEG-paper-to-electronic.pdf.
5
Kaizen bursts are used to indicate improvement areas in a process during value-stream mapping work-
shops. Each Kaizen burst may then be analyzed in greater detail. (Kaizen, also known as continuous
improvement, is an approach to work that systematically seeks to achieve small, incremental changes in
processes in order to improve efficiency and quality).
Achieving Success by Envisioning End Results
End-user involvement
in process design
Ease in quantifying
business impact
Definition of KPIs and
target-setting
Design of a robust
future-state processEffectiveness of the
overall IT implementation
program
Greater commitment
and sponsorship
The outcomes-driven approach to process transformation helps generate business user support, smoother technol-
ogy deployment and easier quantification of the project’s business benefits.
Figure 7