Business Process Management: a Key Ingredient of the Lean

Commercial in Confidence © ORMvision

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Business Process Management: a Key Ingredient of the Lean TelcoPhil Church, CEO ORMvisionTeleManagement World, Long Beach 2004


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IntroductionIntroduction

European (Collaborative) Business Process Management ISV, HQ in Belgium

Founded 2001 by experienced Telco operations managers

“ORM”: “Operations Relationship Management”

The Vision: to cure telecoms’ woes without adding overhead


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TMF Quote (Keynote Speech TMW Nice 2004)TMF Quote (Keynote Speech TMW Nice 2004)

“ (about the Lean Operator)... policy based Business Process Management technology looks like being a powerful enabler of process flexibility so that an operations manager or product manager can graphically design a new process and then download that process change into the systems that deliver the service quickly and simply. If the car industry can do it, why can’t we?"

Keith Willetts, Chairman and Founder TMF


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In an ideal world...In an ideal world...


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The History of LeanThe History of Lean


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Lean Lean -- what’s it mean?what’s it mean?

Roots: the Toyota Production System (1970)Lean Philosophy

Elimination of waste Continuous improvement Simplification of business processes

Implementing a Lean Strategy needs:UbiquityCommitment Extension across the Value Chain

Results: “3 times more likely to be best-in-class performer” (Aberdeen Group 2004)


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The Telecoms InertiaThe Telecoms Inertia

Ineffective competitionLocal deregulationHigh voice pricingLow volume/slow intro servicesMonopoly mentalityUniversal service obligationNo role model for OLO’s to beat


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The 3 “R’s”The 3 “R’s”

Re-engineeringRationalisationRightsizing


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Telecoms needs lean!Telecoms needs lean!

Diet is not enough...Only a change of behaviour keeps the kilos off.

Telecom evolution


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BPM BPM –– What lean has been waiting forWhat lean has been waiting for

“BPM concerns the software and tools required to model and execute an organisation’s business processes, through the orchestration and integration of the necessary people, systems, applications, and application components.”

ExecutionExecution

AdaptationAdaptation

ModellingModelling

MonitoringMonitoring

BPMBPM


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Orchestration?Orchestration?

Structured Communication is key.


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BPM: Exceptional exception handlingBPM: Exceptional exception handling

“Exceptions are the norm” (Delphi Group 2004)

Workflow

Exception Handling

B2B

LooseCoupling

Fixed

Enterprise Value Chain

80% of Cost

80%

of

Com

plex

ity

EAI


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BPM Positioning BPM Positioning

Introducing a Process LayerLinking Network Performance, Service Levels, and Customer Service through Process Management

Network Configuration

Process Layer

Network Inventory

FaultManagement

Performance Management

Network Usage

ProcessManagement

CustomerCare

SLA Management

Billing & Invoicing


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Business Values of applying BPMBusiness Values of applying BPM

BPM provides:Effective glue for past investment Evidence/audit trails /overviewsSLA ManagementClear process ownershipError free information hand-overSingle source informationGuaranteed Q.O.SCost Reductions (>50% on average)Increased Productivity


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Gartner Gartner –– 11 Money Relevant Reasons for BPM 11 Money Relevant Reasons for BPM

1. Build better new processes faster2. Know what you’re doing (right or wrong)3. Avoid M&A friction4. Get someone else doing the dull stuff (outsource)5. Buy software and implement packages better6. Get control of parallel processes (core consolidation)7. Get idiot work away from people (automation)8. Value/supply chain creation/maintenance (process fusion)9. Do things better with optimised processes10. Stay out of Compliance trouble11. Stay hungry and move faster (scenario building)

“By 2005, 70% of enterprises will use BPM in some way to drive cost reduction or boost competitive advantage.” Jim Sinur.


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Cable & Wireless Case StudyCable & Wireless Case Study

LEC1

LEC2

LEC3

LEC4

www

Fax

email

www

Proc.

Pre-Sales & Provisioning process for Local Loop

Pan European coverage, 15 regions, 150 business partners

Transparent to LEC’s using existing formats, languages

Centralisation in Munich

Strict budget constraints

Lean aspirationsCable & Wireless

Sales

OrderDesk


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The reality of ImplementationThe reality of Implementation


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Cable & Wireless: Lessons Learned (1)Cable & Wireless: Lessons Learned (1)

Pre-analysis is crucial:

Processes and procedures are never up to dateOrganisations adapt quicker than processesIgnore ‘politics’ at your perilIgnore ‘technology’ at your peril

People

Processes

Systems

Objects

CRM

BPM

EAI

ORM


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Integration worries everyone:

“We tried it before – it failed”Legacy systems overlapInternal systems are not stable‘Stand-alone’ systems are oxymoronic

People

Processes

Systems

Objects

CRM

BPM

EAI

ORM


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People may not welcome change!

Paralysis by analysisAversion to all things ‘process’Unstable environments breed lethargyAs many agendas as there are players

People

Processes

Systems

Objects

CRM

BPM

EAI

ORM


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Cable & Wireless: Solutions (1)Cable & Wireless: Solutions (1)

Pre-analysis:

Involve Business Process Analysis experts earlyAscribe value to pre-analysis Adopt partnership approach - but the customer ‘owns’ his processesK.I.S.S.


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Integration:

Identify boundaries of problem to solveDon’t eat the elephant!Provide ‘easy and light’ integration possibilitiesExplore the WHY integrate question too


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People resistance:

Sell the benefits – honestlyInvolve users in pre-analysis phaseWear the ‘expert’ mantle lightlySell them the tools to control their destiny post-implementation


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Cable & Wireless: OpportunitiesCable & Wireless: Opportunities

Extension of contract for DSL quote management and provisioning

Proof of customer confidenceHigher transaction volumesHigher visibility

Group-wide roll-out

Roll-out to business partners Closer interaction with business partnersEnhances transparency and SLA ManagementNobody’s problems are unique


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Implementation RoadmapImplementation Roadmap

Phase 1

Phase 2

Phase 3

Phase 4

Business Environment WorkshopBusiness Process AnalysisPre-analysis signed off Configuration BPM system

Simulation & OptimizationTraining of Super UsersActivation of Business Process Engine

Analysis Integration NeedsBusiness Activity MonitoringSLA ManagementVendor Management Integration with

Internal SystemsBusiness Partner Integration

Week 0 Week 4 Week 12 Week 16


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ConclusionsConclusions

Where BPM solves an immediate need and is consistent with longer

term ambitions, it is the perfect lean enabler

Questions?

Phil Church, [email protected]

Documents

Business Process Management: a Key Ingredient of the Lean