BPM at Ericsson - BPM & · PDF file› Fulfill Ericsson stakeholder's expectations on direction and ... •Process roadmap and deviation handling •Process management methodology

Corporate Process Governance versus Regional Realities and Business needs

Bonn – May 15th

BPM at Ericsson

Bernd Efferz | BPM at Ericsson | © Ericsson AB 2012 | 2012-04-17 | Page 2

Short facts

› Founded: 1876 in Stockholm, Sweden

› President and CEO: Hans Vestberg

› Headquarters: Stockholm, Sweden

› Employees 2011: *104,525

› Net Sales 2011: SEK 226.9 billion

(USD 32.9 billion / EUR 25,4 billion)

135 YEARS OF INNOVATION

* year end 2011

NET SALES (SEK BILLION)

179,8187,8

208,9

20102006 200920082007

206.5 203.3

226.9

2011


This is Ericsson

We provide:› Communication networks › Services to network operators

› Enablers to multimedia service providers

Our joint venture provides:› ST-Ericsson; semiconductors

and wireless platforms

THE PRIME DRIVER IN AN ALL-COMMUNICATING WORLD


50 billion connected devices

We have a vision of 50 billionconnected devices by 2020.

We do not just connect placesand people – but also machines and devices.

Anything that benefits from being connected will be connected.


BPM at Ericsson

› Corporate Process Governance versus local process management realities and business needs.

– Ericsson’s process governance setup– Standardized and harmonized processes– Regional business realities and requirements– Change & improvement framework and ways ahead

How to accelerate savings via process management in a fast changing business environment?


Ericsson Business Process

Core elements for major units

EGMS at a glance

Risk based assessments

Ericsson Group Management System (EGMS) Elements


Ericsson Business Process Governance


MEASURABLE VALUEDelivers measurable value to Ericsson and this is recognized by Ericsson’s customer and Ericsson bottom line

STRATEGY ALIGNMENTConsiders future state and transformation connected to Business strategy and how we work with Business process maturity level 4 (Excellent) by 2013

E2E PROCESS EXCELLENCEDelivers, by configuration of sub-process components, increased value for customer and increased efficiency in selected, defined E2E processes cross-function

VALUE REALIZATIONValue through high usage and usability with outside in view.

ALIGNED PROCESS AND IT EBP provides a foundation for a coherent, seamless, integrated Ericsson Process & IT roadmaps to secure Strategy to Execution

wanted position FOR PROCESSES


Ericsson Strategy Cycle and input to BPM

› Fulfill Ericsson stakeholder's expectations on direction and performance by

– providing information and insights for strategic decision making– setting the direction and strategies for Ericsson– deploy strategies into execution through priorities, targets and

programs – agilely act on new opportunities

Process deploymentStrategy cycle


Ericsson organizational Chart

REGIONS

CUSTOMERS

RESEARCHJan Färjh

BU NETWORKSJohan Wibergh

BU GLOBAL SERVICESMagnus Mandersson

BU SUPPORT SOLUTIONS Per Borgklint

BU CDMA MOBILE SYST.Rima Qureshi

JOINT VENTURES

ST-ERICSSON Didier Lamouche

GROUP FUNCTIONSCommunications – Helena Norrman Sales & Marketing – Jan WärebyFinance – Jan Frykhammar Strategy – Douglas L GilstrapHR & Organization – Bina Chaurasia Technology & Portfolio mgmt – Ulf EwaldssonLegal Affairs – Nina Macpherson

CEOHans Vestberg

North America – Angel RuizLatin America – Sergio Quiroga da CunhaMediterranean – Nunzio MirtilloWestern & Central Europe – Anders RunevadNorthern Europe & Central Asia – Robert PuskaricMiddle East – Anders LindbladSub-Saharan Africa – Lars LindenIndia – Fredrik JejdlingSouth East Asia & Oceania – Arun BansalChina & North East Asia – Mats H Olsson

IPR & Licensing – Kasim Alfalahi

Process Owner

Process Owner

Process Owner

Process Owner

Process Owner


Region Western and Central Europe Organization Chart

GCU VODAFONE

Torbjörn Possne

GCU DEUTSCHE TELEKOM

Nils de Baar

CUSTOMER UNIT UK & IRELANDChris Houghton

CUSTOMER UNITWEST EUROPE

Stefan Koetz

CUSTOMER UNIT CENTRAL EUROPE

Emil Nilsson

HEAD OF REGIONAnders Runevad

FINANCE & EFFICIENCYCarl Mellander

MARKETING &COMMUNICATIONS

Stephen Hall

HUMAN RESOURCES & ORGANIZATION

Paul van ‘t Hooft

LEGAL AFFAIRSTed Hermans

STRATEGY & BUSINESSDEVELOPMENT

Tobias Jenssen

COMMERCIAL MANAGEMENTCamilla Vautier

OPERATIONS & COMPETENCE CENTERJean-Claude Geha

ENGAGEMENT PRACTICES Ozgur Tohumcu

Process Responsibles









LineManagement

RWCE process roles and responsibilities

PS

PSPS

PS

LPR

Local Process Driver responsibilities:

•Process governance in EGMS

•Process roadmap and deviation handling

•Process management methodology and assessments

•Cross function/border coordination

•Consultancy services

Line Management and Process Specialists

responsibilities:

•Process documentation

•Process execution

•Process measurements

•Process improvements

Head OCC

PS

PS

PS

LPD

LPD

LPD

LPD

Head of EP

Head of FI

LPR LPR

LPR

Head of OperationalUnit (….)


BPM at Ericsson


– Ericsson’s process governance setup– Standardized and harmonized processes– Regional business realities and requirements– Change and improvement framework and ways ahead



Ericsson Business Process


Sales Business Process


BPM at Ericsson


– Ericsson’s process governance setup– Standardized and harmonized processes– Regional business realities and requirements– Regional change and improvement framework and ways ahead



three key OPERATOR (our Customer) CHALLENGES

PersonalizationSpeedQuality

ChoiceBundling

Verticals

M-2-M

MobileBroadband

2 sided business models

Business InnovationChallenge

CustomerExperienceChallenge

Outsourcing

CloudConsolidation

Business EfficiencyChallenge

Communication evolution

TransformSimplify

RunOperate

GrowExpand

Modernization


Regions CHALLENGES

Macro uncertainty

Consumer confidence

Operator revenues

Business InnovationChallenge

CustomerExperienceChallenge

Business EfficiencyChallenge

TransformSimplify

RunOperate

GrowExpand

Extreme price competition

Strong Asian players

Merger & Acquisitions

Extend Service capabilities

Invest in verticals


Vision

Mission

Organizational Strategy & Objectives

High Level Operations Process Management

PortfolioManagement

Management of On-going Operations(recurring activities & producing value)

Management of Authorized Programs & Projects

(projectized activities & increasing value production capability)

BPM and Change & Improvement Framework

How to effectively manage this

Combine Business Process Management and Region Change and Improvement Initiatives


BPM at Ericsson


– Ericsson’s process governance setup– Standardized and harmonized processes– Regional business realities and requirements– Change & improvement framework and ways ahead


RWCE Efficiency Board

To Drive our Regional Change and Improvement Portfolio


EB Charter


High Level Process

BalanceAlign

CategorizedComponents

Monitor and Control

AuthorizedComponents

AssessCandidates

Prioritize

Launch Portfolio Scenario

Setup & Prioritize

Balance Portfolio

Resources

Evaluate Portfolio Scenario

Make Portfolio

Plan Decision

Make Portfolio Scenario Decision

Monitor Portfolio

Identify & Categorize

Idea

Balance Portfolio Finances

Communi -cate

Portfolio Plan

Report Portfolio Status

Approve Selection Authorize Plan

Monitor & Control PortfolioBalance PortfolioAlign Portfolio


Potential Programmes

M&A Excellence

Workforce Mobility& Flexibility

High Efficiency Operations

Best In Class Inventory & Working

Capital


Full RWCE Change Mgt Solution

Engagement Practices

Commercial Mgt

OCC

Finance

Sourcing

IT

OD&E

Security

HR

REFM

Legal

Internal Communications

etc

BIC Inventory & Working Capital

Workforce Mobility & Flexibility

High Efficiency Operations

M&A Excellence

Steering Group = Efficiency Board Sponsor = Region Head

Monthly Reporting


Are we in the right race?

How is our performance?

Did we get the result?

�E

ffici

ency

Boa

rd

�

LINE

EB


Timing & Content

Q1 Q4Q3Q2

Q Q QM M M M M M M

MonthlyPerformance Review

QuarterlyStrategic Alignment

Ad-HocApproval of new itemsDecisions on stopping/postponing on going changes

M Q


regional Portfolios to Steer


Monthly Status Reports

September

October


Summary

› Ensure company wide process governance and secure top level management ownership

› Standardize and harmonize processes top-down› Analyze local business environment and requirements› Establish a regional cross function / cross organization

steering board (Efficiency Board)› Decide on scope and prioritize regional change portfolio

and associated investments› Monitor on progress and value realization



Documents

BPM at Ericsson - BPM & · PDF file› Fulfill Ericsson stakeholder's expectations on direction and ... •Process roadmap and deviation handling •Process management methodology