BPM Best Practices and Pitfalls_ML_SAG

8/4/2019 BPM Best Practices and Pitfalls_ML_SAG

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BPM Best Practices

Mechelen, November 24th 2008


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BPM Best PRactices| Page 2

Why BPM for Dummies?

Take a copy for your boss!

A market rich in awareness but

poor on understanding Lots of different perspectives

across the enterprise

Misunderstanding about

webMethods/Software AG

>40,000 CopiesDistributed

5Languages


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39 Years of Recognized Software Expertise

Over 4,000 global customers in 70 countries Gartner Research:

Leader in BPMS Leader in SOA Governance Leader in B2B

Forrester Research: Leading Enterprise Service Bus Provider Leading Business Process Management Suite

AMR Researchs top-ranked solution forSOA/BPM

Financial Strength and ReachAnnualized revenues approaching $1B

Highly profitable (EBIT margin 23% in 2006) Over 65 global partners

Software AG At Glance


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Software AG webMethods Suite


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BPMS Customer Success


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BPMS Technology ArchitectureUnified Workspace

Task InboxesMonitoring

Dashboards (BAM)User Interfaces

(CAF)

Execution EnvironmentBusiness Rule

EngineAnalytics

Engine (BAM)ProcessEngine

Simulation Engine

Process Design

Process Modeling Process Development &Implementation

KPI Definition

Rule Definition

UI Design

Metadata Management

Integration/SOA


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A New Approach

IT

BusinessInfrastructure

Software

BusinessInfrastructure

SoftwareDrag & Drop Service ReuseComposite ApplicationsBusiness RulesSimulation

Business

InputProcess ModelingBusiness RulesCollaboration ToolsSimulation

Business

Output

Intuitive Process WorkspaceReal-time Monitoring & Analytics (BAM)

Improve

Compose

SimulateModel


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What Makes webMethods BPMS Different?

1.All process scenarios2.Completeness3.Suite!

4.Apple-like Usability5.Performance-driven6.Time-to-Business-Value

7.Governance

Enterprise BPM


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Cox CommunicationsInnovation in Productivity and Customer Service

Field

Service

Productivity

CustomerService

Excellence

Save 10 minutes per Field Service Rep (FSR) per day. At

3,500 FSRs and a rough cost of $25 per hour per tech, thatwould deliver some $4.4 million annually in productivity gains

and nearly $40 million in net present value


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Autotrader.comInnovation in Customer Retention

Proactive Alerts Project

event driven service alerts trigger and assign tasks to sales rep

Goal = reduce dealer cancellations

Business users own and document

agile business processes

Real-time monitoring andreporting of retention lifecycle

Reduced cancellation of dealercontracts by 20% in year 1 and

reclaimed all associated revenue


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Initiative to eliminate all paper-

based processes Leave and attendance forms and

workflow was most intensive andmost valuable

Personnel costs = 80% of total

expenses Process model at the heart of the

system Project extended/enhanced the

existing legacy systems and

demonstrated their extensibility

Florida Community College JacksonvilleInnovation in HR

Reduced average approval and

submission time from 5 business daysto


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Best Practices in Enterprise BPM


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Achieving Perspective


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Local Execution


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BPM Maturity

Immature Maturing Mature

No processdocumentation

No processdocumentation

Norecognitionof processproblems

No culture ofprocess

Norecognition

of processproblems

No culture ofprocess

Somedocumentation,

but nosophisticated or

integratedtoolset

Somedocumentation,

but nosophisticated or

integratedtoolset

Processtools

Processtools

Processmetrics

Processmetrics

Basicmethodology

Basicmethodology

Processrepository

Process reuse

Processrepository

Process reuse

Clear enterpriseprocess

methodology

Clear enterpriseprocess

methodology

Processcontrollership

Processeslinked tobusinessstrategy

Processcontrollership

Processeslinked tobusinessstrategy

A culture ofprocess in

place

A culture ofprocess in

place

Inter-Enterprise BPMInter-Enterprise BPM

Multi-process,multi-

department.Enterprise BPM

Multi-process,multi-

department.Enterprise BPM

Linked BPMand SOA

strategies

Linked BPMand SOA

strategies

Typical


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The Move to Enterprise BPM

100%272Total

2%6No interest

23%63Exploring opportunities

25%69

Initial commitment to limited number of mid or

low-level projects

24%64

Significant commitment to multiple high level

process projects

26%70

Major strategic commitment by executive

management

How would you characterize your organization's current interest in BPM? (Choose

one)


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Getting Started With Enterprise BPM

Engaging the Business

Choosing Projects

Managing Projects

Dealing with BPMs Politics


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Engaging the Business


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Learn What You Can About the Business I

OperationalExcellence

Consistent, predictable,low cost, error free, efficient

More efficient but less flexible

in changing directions or meeting

needs of individual customers

CustomerIntimacy

Tailors service delivery to the

processes of individual customers

More flexible for adapting to

specific customer needs

(but less efficient)

ProductLeadership

Continuous and rapid introductionof new products and services

More flexible for adapting to needs

of new offerings (but less efficient)


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Learn What You Can About the Business II

1. What must the first accomplish this year to be successful?

2. What competitive factors have impacted us most in the last 2years?

3. What are the three most important products or services?

4. What are the sales of each and how will that change over the

next 2 years?5. What is the largest change in the works for products or services?

6. What is the demographic serviced by each of the products?

7. What us our market share in each product? Changes?

8. Who are our main competitors?9. What is the strategy for each product line? What is the

differentiator?

10.How are our competitors better exploiting processes or IT than

us?


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Measure First

BPM..Where to Start?

1. Determine whats critical tobusiness success

2. Define KPIs & monitor with

Optimize for Process

3. See whats working and whatisnt

4. Focus improvement on areas ofday-to-day pain

..without ever havingorchestrated a process

Focus Efforts, Maximise ROI

An On-RampFor BPM Success

ProcessImprovement

Lifecycle

Measure First


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Choosing Projects


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TransformationTransformationTransformation

InitiativesInitiativesProjectsProjects

ProjectsProjects

Understand Your Scale

DiscreteLocalized

Stable

Tactical

Short Term

Continuous

Ubiquitous

Routine

Visionary

Longer Term

InitiativesInitiativesProjectsProjects

ProjectsProjects

ProjectsProjects

Breakthrough

EnterpriseDestablizing

Strategic

Medium Term


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Supporting Organizational Strategy

ResourcesResourcesPeople Applications

Materials ServicesData

ProcessBPM

StrategyStrategy

Functions & Projects


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Size Matters

Big ProjectBig ReturnsSteep Learning Curve

Higher chance of failure

Small ProjectSmaller ReturnsLearning By DoingHigher chance of Success


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What Processes Are People Improving?


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Managing Projects


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The Role of the Process CoE

BPMCoE

Aligning with

CorporateStrategy

Aligning with

CorporateStrategy

ControllingGovernanceControllingGovernance

Consistent adoptionand alignment of

methodologies

Consistent adoptionand alignment of

methodologies

DevelopmentOf BPM

Roadmap/Vision

DevelopmentOf BPM

Roadmap/Vision

EncouragingCollaborationEncouragingCollaboration

Consistent adoptionof tools and process

frameworks

Consistent adoptionof tools and process

frameworks


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Keys to Success with BPM CoE

Dont form a CoE too early

Evolve an existing (Integration) Competency Center Ensure cross-team support

Finance

EA team (governance role)

LoB Ensure executive representation

Address a framework for definition of KPIs developing a

consistent business case

Address a consistent methodology for project selection

Ensure consistent communication

Meet face-to-face


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Dealing with Politics, Roles, etc.


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Understand Your Org Structure

Understand the current

roles and responsibilities inyour organization

Note: There are two

versions.the official,

documented version and

the real version

Investment here saves time

later Start to think about how

they could changebut be

careful!

Thanks to Alec Sharp of Clariteq Systems for concepts in this slide


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Improvement is Hard

Thats why we must: Make it clear - what processes reallyare

Make it visible how theirprocesses behave

Make it blame-free everyone is working hard

.Then let the facts speak for themselves

Honest criticism is hard to take, especially from a

relative, a friend, an acquaintance, or a stranger.

Franklin P Jones

Honest criticism is hard to take, especially from a

relative, a friend, an acquaintance, or a stranger.

Franklin P Jones




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Acknowledge Different Perspectives.But Get Agreement

If you cant agree on what a process is, youll have a hard timediscovering, modeling and improving one!

p q y p

Size Concept

Bigger than a business process: Customer relationship management A group of related processes

Smaller than a business process: Setup customer A sub-process or activity

Much smaller than a business process:

Calculate credit limit A procedure or task

Confusion with organisation: Our Customer Service process

Confusion with systems: Our Oracle CRM system

Confusion with technology:

Our e-business strategy

A True Business Process Acquire Customer



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Functions are Critical

BPM aligns the objectives and work of functions

Functional structure is an efficient organizational concept Contain specialized knowledge, skills and experience

But they must be coordinated and managed as a whole

Dont call them functional silos Be positive.You are improving their ability to do their job

Where they fit into the value chain and how they contribute

How they focus on delivering value

Sales AccountsReceivable

Production Logistics

Process: Order Fulfilment

p q y p



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3 Common Obstacles

1. Processes are not identified properly and made visible2. No process owner to set overall direction and resolve conflict

3. The goals of the functions often conflict with the goals of the process

Sales AccountsReceivable

Production Logistics

A/R Goal:Precision vs. rapid

collection

Logistics Goal:

Lowest cost ofdelivery

Production Goal:Minimize setup

Sales Goal: pushfor end of quartersales

Process goal:

Shortest CycleTime

Process: Order Fulfilment


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Other Best Practices and Pitfalls


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The Importance of Data

Metadata

Handling an increasinglycomplex and granular

environment

What stuff do you have?

Master Data Management Youre aligning systems around

a single item of workflow

Data quality and consistency

are critical

Now That Should Clear Upa Few Things Around Here!


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10 BPM Best Practices/ Common Pitfalls

Ready, Fire, Aim!

Automate This!The veiled RIF Program

Ignoring End Users

Liberate and GovernHear the Voice of the Customer

Adopt a Methodology

Ignoring Master/Meta Data IssuesNot Thinking Differently

Doing it All Yourself

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BPM Best Practices

Thank you!

[email protected]

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BPM Best Practices and Pitfalls_ML_SAG