Business System Requirement Analysis (BSRA)

8/4/2019 Business System Requirement Analysis (BSRA)

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Performance Development Corporation, 2002. All Rights Reserved.9/17/2010 1 pdc

Presented by:

(Business Process Redesign)

Ar vind D. Shah, Man aging Pr incipalPerform ance Development Cor pora tion

Pr inceton, NJ 08540(609)443 -1226

[email protected]

Business System Requirement Analysis (BSRA)

DAMA

2010


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Histor y of AccomplishmentsHistor y of Accomplishments

Perform ance Development C orp oration (PDC) is recognized intern ationally for assistinghund reds of clients in achieving business benefits from advanced technologies. PDC ha s madesignificant contr ibutions thr ough a series of n otable omplishment s including:

Model Driven En terp rise Information Integr ation (2005)

CRM ar ticle published in the J ourn al of Inter nat ional nstitute of CRM (UK) (2003)

(1997 )

Intr oduced compr ehensive Ch ange Ma nagement semina r and ology(1994)Integrated Bu siness Reengineering, Total Quality M anagement, and Inform ationEngineer ing meth odologies (1991)

(1990)

(1988)

(1987)

Started the industr y-leading (1979)

Developed concept (1976)

Developed - a meth odology for defining end user requir ements (1975)

Published (1973)

Business Process Redesign H andbook

I nforma tion Strategy Planning H andbook

The M anagement H andbook for I nformation and End U ser Computing

Relational Development Environment Guide

Data Base Newsletter

Data Administration

Service Analysis

Comparative Analysis of Data Base M anagement Systems


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Enable our customers to clari fy and/or achieve their business go als through the gainful use of knowledge, technology and change meth ods and

techniques.

PDC helps its clients accelerate their move to new bus s environmentsthr ough knowledge and technology enabled man agement. e assistclients as they seek to clar ify and imp lement business rat egy inadvanced technology environments. We help man agement ensur e thatthe business dr ives the process and that technology pr ides pr actical

value within a changing orga nizational culture.

Emp owered Management

T e c

h n o

l o g y

E n a

b l e r a n

d D r i v e r

PDCAssist

New BusinessEnvironment

Old Bus inessEnvironment

MissionMission


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Federal, State, LocalGovernment

Transportation

Education

Service

Financial /Insur ance

Petroleum

Retail

Manufacturing

Utilities

Par tial Client ListPar tial Client ListAtomic Energy (UK)Belmont County, OH

Calgary(Canada) CityCanada Post (Canada)

Delaware Department of FinanceMontgomery County, MD

New Hampshire Dept. HHSNew Jersey Motor Vehicle Services

New Jersey OTISSouth Dakota Dept. of Transportation

Wisconsin Dept. of TransportationUS Agency International Development

US Central Intelligence AgencyUS Department of Energy

US Naval Facilities Engineering

LeasewayMayflower

Cornell UniversityDuke University

University of MichiganNational Education Association

American Bible SocietyCH2M Hill

Young & Rubicam (UK)

Abbey National Bank(UK)American Express

Bank of AmericaBank of Delaware

Blue Cross/Blue ShieldDow Jones

Fireman's Fund InsuranceJCPenny Life

Johnson and HigginsKemper Insurance

Providian InsuranceTransamerica Insurance

UNUM InsuranceUSF&G

ExxonGetty - Texaco

Indian Oil (India)Mobil Oil

Norsk-Hydro (Norway)

Shell OilSun Oil

Compucenter(Brazil)Giant Foods

Sainsbury(UK)Thorn- EMI(UK)Venture Stores

Abitibi -Price(Canada)ALCOA

Ciba- GeigyEBSCO

Eli Lilly and CompanyFMC Corporation

General MotorsHallmark Cards

IBMIron Ore Company(Canada)

LockheedMerck and CompanyNycomed(Norway)

Philip MorrisToshiba(Japan)

United Biscuits (UK)Weyerhaeuser

AT&TBoston Edison

Carolina Power and LightGTE

National Fuel GasNebraska Public Power District

NYNEXOglethorpe Power

Southern California GasSouthwestern Bell Telephone

United Telephone


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Ou r scope of consulting and edu cation services is in a const ant stat e of evolution d ue to theintroduction of new ma nagement techniques an d advanced t echnologies and their pr oven viability inthe ma rketplace. PDC cur rently pr ovides consulting, e on and placement expertise in thefollowing ar eas:

ManagementBusiness Process ReengineeringCustomer Relations ManagementInform ation Str ategy PlanningEnterprise Architecture PlanningVisioning and M anaging Cha ngeData Management/governanceDisaster Contingency Planning

TechnologyIT RestructuringTechn ology Architectu res and SelectionBusiness Area AnalysisPr ocess/Data ModelingIRM for Em erging TechnologiesData WarehousingInternet/Intranet/Extranet

ImplementationTur nkey SystemsPr oject M anagement

E -Commer ce DevelopmentOffshore DevelopmentQuality Assur ance

Pr ofessional ServicesExecutive Sear ch

Permanent RecruitingContract Services

Consulting ServicesConsulting Ser vices


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Education Ser vicesEducation Ser vicesEffective on-site educat ion cour se offerings h ave always been a top p riorit y at PD C. Thou sand s of individuals have attended our seminars, norm ally offered in one, two and th ree day form ats. Thesemay be condensed to shor t management p resentations. Ou r cur rent cour se titles include:

Business R eengineering (2 days)

Business Pr ocess Red esign (3 d ays)

Inform ation Stra tegy Plann ing (3 days)

Business Ar ea Analysis (3 days)

Managing the Data War ehouse Commitment (2 days)

Change Management (3 days)

Inform ation Resource Management (2 days)

Data M odeling (2 days)

Provides an intensive, management -oriented overview based on extensive experience and the dramaticresults a chieved.

Shows how to redesign business processes to increase profits, productivity, competitiveness and customer service.

Describes managing business success through defining orga nization information n eeds and priorities in astructured manner.

Shows how to analyze business requirements using data modeling, process modeling, and informationengineering techniques.

Illustrates business dri ven approaches to utilizing information a ssets.

Shows how to integra te change in people, systems and s tures.

Illustrates how to u se Data Shar ing a nd Dat a Availability to accomplish the business improvement objectives.

Explains different levels of Data Modeling that play a n important r ole during the Planning (ISP),Ana lysis (BAA) a nd Design (BSD) pha ses.


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Arvi nd D. ShahManaging Principal

Mr. Shah is a Managing Principal of Performance Developm ent Corporation and is known internationally as a speakerand authority. Mr. Shah has over thirty years of broad experience, assisting and leading efforts in Strategic Planning,Change Management, Business Reengineering, Information Engineering, Information Strategy Planning, Data

Administration, Data Warehousing, and Project Management for major corporations worldwide. His consulting hasinvolved virtually all facets of business and governme broad range of applications. Mr. Shah's principal interestshave been focused on the end u ser and managerial aspects of Information Technology. He developed PDC s approachto blending Business Reengineering, Total Quality Management (T QM) and Inform ation Engineering. He has alsodeveloped management principles to integrate the front end Internet and client/server environments with the back endmainframe computing.

Prior to joining PDC, Mr. Shah was with Dow Ch emical, General El ectric, Exxon and Corning Glass. He wasresponsible for project management and design, develop d implementation of IT applications in the areas of customer service, finance and accounting, sales order ocessing and invoicing, inventory management, facilitiesplanning, management information, profit p lanning, sales forecasting, and material management systems. He hasextensive experience with decision support systems and data warehousing. His experience includes:

Developed a Business Process Redesign Methodology that blended Business Reengineering, TQ M, and InformationEngineering. Applied Business Reengineering techniques to signif icantly reduce the Procurement Cycle for p arts andequipment in a Mining o rganization.

Decreased the Order Processing and Billing cycle from seven days to one half day through Business Reengineering for alarge Textile company. Guided a major Insurance company in the area of Claims Processing, reducing manpower by60% while increasing customer service and responsiveness with an overall payback completed in less than two years.

Headed a p roject to develop a business reengineering strategy development project for a technology serv ice company.The d eliverables included a plan that blended Business Reengineering and Information Engineering.

Assisted a major pharmaceutical firm in reengineering their sales force consisting of 2000 sales persons. The teamconsisted of the client as well as consultant staff.

Mr. Shah has directed or assisted over 100 projects involving Information Strategy Plans (ISP s), Business Area Analysis(BAA), Data Warehouse, Information Resource Management and other aspects of planning, design and implementationof information systems for major Fortune 1000 size commercial organizations an d government agencies.

Business Reengineering

Information Engineering


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Performance Development Corporation, 2002. All Rights Reserved.

The Management Handbook for Information Center and End User Computing

Information Strategy Planning HandbookThe Business Process Redesign Methodology Handbook

9/17/2010 8

Guided the restructuring of the IS Function for a strategic business unit of a Fortune 1000 sizes globaltelecommunications firm. The objective was to prepare for planned business reengineering projects.

Assisted a division of a major Pharmaceutical company the reorganization of its IS function. The objective was tobuild systems using Information Engineering and Client Server Technologies. Directed a project which involvedrestructuring the IS function of a Public Utility company. The objective was to transform the IS organization into amature organization capable of capitalizing on new technologies while being responsive to business needs. Theimpetus was to incorporate Planning, Business Reengineering and TQM in a ll their projects.

AT&T Nebraska Public Power DistrictNational Fuel Gas Eli LillyCapital Holdings/National Liberty National Fuel GasNavy Federal Credit Union Rodale PressSouthwestern Bell Unionmutual Insurance Co.

CH2M Hill, Inc. Getty/Texaco OilState of Delaware Naval Facilities Engineering CommandUnited Biscuits (UK) Venture StoresGTE AP TechnoglassThorn EMI (UK) State of New JerseyFMC University of MichiganIron Ore (Canada) Toshiba (Japan)National Computer Center (Brazil) Nycomed (Norway)

BS, Electrical Engineering, University of Bombay MS, Electrical Engineering, Ohio State University MBA, Information Systems, College of William and Mary

Co-authored the following books:, published in 1988 by QED Information

SciencesThe , published in 1990 by Performance Development Corporation

published in 1999 by Performance Development Corporation

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Reengineering of the Information Technology Servi ces (IS) Functi on

Clients Served

Education

Publications


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Business Systems Requir ement Analysis(Systematically integrating pr ocess, da ta and business rules)

Business Systems Requirement Analysis(Systematically integr ating pr ocess, da ta and business rules)

As the bridge from Planning to Design, Business System Requirement Analysis (BSRA)builds upon the results of Enterprise Architecture or Information Strategy Planning todocument business system requirements. To be successful, you need a comprehensivemethodology which is flexible as well as replicable in addition to modeling tools andtechniques. A BSRA project is usually initiated from two sources. It could come fromsystems planning or be initiated to address a specific business need. In either case it isimportant that current processes and data sources are analyzed and business rules areextracted and documented. Equally important is to improve process in order to solve thecurrent system problems and take advantage of the new system features.

No project can succeed if business analysts did not participate in the business systemanalysis. The data gathering, validation and approval e key steps for delivering a systemthat meets business needs. The project must have mile at which point senior

management is involved in decision making.

This presentation includes the discussion of the methodology that evolved over 30 yearsof PDC s consulting experience. The methodology integrates the aspects of enterprisearchitecture, information engineering and business process as well as qualitymanagement.


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1. The BSRA Methodology

2. How to plan and scope the pr oject for on -timedelivery of qua lity r esults

3. How to gather and document Requir ements

4. How to integr ate Pr ocess and Data5. How to redesign processes

6. How to blend Quality Management

7. How to develop a tr ansition plan

8. How to get management and user s involved

9. How to apply this appr oach to Data ManagementProcesses

BSRA


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Performance Development Corporation, 2002. All Rights Reserved.9/17/2010 11

B-551

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Information Strategy Planning

Business Sys. Req. Analysts

Business System Design

Technical System Design

Implementation

Scope Detail

System Development Life Cycle (SDLC)


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BSRA Methodology Overview1. Plan the Pr oject

2. Get ManagementInput

4. Develop Top -DownProcess Model

7. Resolve Pr oblems

8. Redesign Pr ocesses

9. Finalize Data Model

11. Prototype Processes

12. Incorporate QualityManagement

5. Analyze Cur ren tProcesses

6. Define Data Needs

10. Docum ent Bus inessRules

14. Develop Tr ansitionPlan

13. PerformCost/Benefit/Risk Analysis

Plan

Analyze

Redesign

Plan Tr ansition


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BSRA DeliverablesProcess DocumentationProcess Charts current & proposed

Process Profiles current & proposedInformation Sources current & proposeHighlight Changes

Data ModelDM ChartsEntity/Attribute Profiles

Data Defini tion ch angesData Conversion Required

Business RulesCurrent & ProposedHighlight changes

Technolog y Assumptions

Cost/Benefit/Risk Analysis

Process/System Implementation Plan


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Plan

Analyze

Redesign

Plan Tr ansition


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Subtask 1.1 Define/refine pr oject scope

1.2 Select project team1.3 Secure Facilities

1.4 Develop pr oject schedule

1.5 Allocate resources

1.6 Define deliverables1.7 Prepar e documentation system

1.8 Obtain management approval

Task 1. Plan the Redesign Project


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Puts fence around project

Sets Stakeholder expectations

Data Self-sufficiency

Size selected will be appropriate

Timeframe is defined

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Impor tance of Scoping

u

u

u

u

u


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NOTE: Percentages refer to the percentage of information classes created by another system.

GuestInformation

Promotion

FacilitiesManagement

Reservation

Ordering

Billing

HumanResource

Purchasing

CashMonitoring

TrendAnalysis

17%

17%

17%

33%

25%

20%

40%

17%

10% 17%

20%

40%

34%

25%25%

14%

14%20%

13%

20%

33%

42% 14%

20%

20%

20%

10%

17%

17%

34%

13%

25%

13% 13%

13%25%13%

13%

10%

10%

10%

MenuInformation

Business Areas / Systems Dependency Char t


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Business Process Redesign Project

ProjectManager

TechnologyExperts

BPR &Quality Mgmt.

Experts

Pr oject TeamB

ManagementSteering

Committee

ExecutiveSponsor

Note: The project must report to the highest possible level management; otherwise the results are diluted.

Pr oject TeamA

DataAnalyst


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Who Gets What Kind of Education and Tr aining?

Management and Client

Project Team

Client Representatives

Documentor(s)

One- two hour overviews Brief education at milestone meetings

Team -building training in the beginning Three day workshop training Periodic reinforcement training at beginning of each major task

Four hour overview

Brief training when needed

One day documentation training and methodology review


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Interview Estimating

2 hours for preparation2 hours for interview2 hours for debriefing/documentation

6 hours

q

q

q

For every interview hour, provide two hours forpreparation and review.

Immediate documentation after interview isrecommended.

In cases where travel is involved, concentrated periodof interviewing must be followed by appropriate timefor documentation and cleanup.


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+ Usually 1/2 or 1 day session.

+ 6 - 12 participants.

+ Limited to single topic.

+ 1/2 day session will require 1/2 day preparation anddocumentation.

+ Focus group technique approximately 30% faster thaninterviewing.

+ Focus group sessions allow all interested partners to buildconsensus on models and issues, so less time is requir forcleanup and integration.

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Focus Gr oup Session Estimating


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BSRA Pr oject Plan1. Plan the Redesign Project

2. Define Pr oject Expectations

3. Benchmar k Pr ocesses

4. Develop Top-Down Conceptua l Pr ocess Model

5. Analyze Cu rr ent Pr ocesses

6. Define Inform ation Needs

7. Redesign the Pr ocess

8. Pr ototype the Pr ocess

9. Incorpor ate Qua lity M anagement

10. Analyze Technological Requirements

11. Determ ine O rgan izational Imp act

12. Addr ess Human Resources Issues

13. Perform Cost/Benefit/Risk Analysis

14. Develop Transition Plan

Task

Week

M ilestones - Senior M anagement Project Review

- M iddle M anagement Approval

2 4 6 8 10 12 14 16 18


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Process

Data

Business Rules

Systems/technology

Problems/solutions

Data gathering

Communication requirements

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Documentation System

&

&

&

&

&

&

&

Remember a fool i s sti ll a fool with a tool


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o Initiate commitment

o Continue education

o Combine with overview session

o Ask for frequent participation

o Solicit departmental support while seeking approval

o Announcement of project from Chief ExecutiveOfficer

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Management Role Project Initiation


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Plan

Analyze

Redesign

Plan Tr ansition


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Business Process Model(High level processes are logical functions)

PerformStrategicPlanning

ManageGuest

Relations

Manage Restaurant

ManageCuisine

PreparationManageFacilities

MeasureOperations

ManageHuman

Resources

ManageFood

Operations


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Process Decomposition Diagram

Take aHot Tub

HeatTu b

Check Water

Turn onHeater

Turn off Heater

RemoveClothes

Prepare

or Tub

Enjoy

Tu b

Play withToys

Drink

ChampagneThrow Ball

for Dog

Take off Shoes &

Socks

Remove

HatTake

off Tie

CollectToys

Find Ballfor Dog

Call for Champagne

Prepareo Leave

Call for Towel

Call for More

ChampagneDrink

Champagne

LeaveTu b

Throw Dog

in Tub

Call for More

ChampagneDr y

Self

(Lowest level process) Exampl


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[[[[[[

[[[[[[

[[[


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Process Profile Content Objective Description

--------------------------------------StakeholderDeliverable/OutputTriggerInputQuality CriteriaValue Added

Information NeededOrganizations (participating)FrequencyVolumeAvailability (response time)Related Process

-Prerequisite-Post -requisite

TasksProblemsCurrent system support

Some of these will be developed during project


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Objective: Satisfy diners request as appropriate to current demand

Descrip tion : All a ct iv it ies in vo lv in g reso lving t ime and pla ce for din er, seat ing,presenting cuisine, meal, and bill

---------------------------------------------------------------------------------------------------------------------- -------

Stakeholders: Diner, Maitre D , waiter, chef

Deliverables/

Output: Seated diners, minimal vacant table time, bill

Trigger: Diner calls for reservation

Input: Request for diner

Quality Customer satisfaction, vacant table time, accepted order

Value Added: Increase patron loyalty, inc rease repeat business

InformationNeeded: Patron information, seating availability, menu

ParticipatingOrganizations: Guest services, food operations

Frequency:Cost:

(Gather the following inform ation only if easily available)

Process Profile ExampleProcess: Guest Services


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BSRA Methodology Overview1. P lan theRedesign Project

2. Define ProjectExpectations

4. Develop T op -DownConceptual Pr ocess Model

7. Redesign the Pr ocess

8. Prototype the Process

9. I ncorp orate Pr ocessQuality Management

11. DetermineOrganizational I mpact

12. Address HumanResource Issues

3. Benchmark Processes


6. Define Inform ation Needs

10. Analyze TechnologyRequirements




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Cur r ent Pr ocess Model

View of current business processesWho performs?Where is done?What is done?

Why it is done?Timing of processesTools usedDocuments used or producedProblems and their significance

v

v

v

vv

v

v

v


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Cur r ent Pr ocess Model Data Gather ing

Sources

Techniques

Process managers

Process performers - doers

Current process documentation (e.g. job performance aids)

Interviews

Focus Groups

Structured Analysis


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Document Cur r ent Pr ocesses

Summar ize major activities per for med by inter viewee:

List all the activities and repeat to confirm your understanding

Review each activity in detail:

Discuss any data sour ce not yet accounted for :

Ask about pr oblems; Invite suggestions for impr ovements

Data Gather ing Steps

Capture the process flow involved

Concentrate on the data sources used Ask for copies of each source Mark on the source documents the data used

For reports, concentrate on usages Watch for information exchanges by telephone/email


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Use top- down conceptua l model and pr ofile fr om Task 4 asguideline and ver ification of completeness.

Don t t ake anything for granted; there is no such thing asquestion.

Keep the interview on tr ack. Ask an appr opr iate question whenyou think the inter viewee is going off the subj ect.

Don t fill out forms in front of user s.

Document Cur r ent Pr ocessesData Gathering Suggestions


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Wor kflow Diagr am(good for man agement pr esentation)

Purchasing

AccountingDepartment

La NouvelleGrabbague

Vendor

Vendor War ehouse

Storeroom

Acquire Ingredient

OrderIngredients

Store Ingredients

Release Order

ShipIngredients

Forward ReceivingDocument

Send invoice

Pay Invoice


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Pr ocess Char tH ierarchical View

Process F low View

Acquirematerial

O/Pmaterials Receivematerials Pay

Vendor Ordermaterials

Receivematerials

Pay formaterials


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Pr ocess MapAcquire I ngredient

Stakeholder

Employee

Buyer

Vendor

Warehouse

InitiatesRequisition

Generates

PO

ReceivesPO

Buyerapproves sub.

Calls forsubstitution

Shipproduct

Receivesproduct

Time


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Cur r ent Mater ials Acquisition Pr ocess Char t

IssuePurchase

Order

ProcessRequisition

Ship Or der Receive

Shipment

PayVendor

Reconcilefor Payment

Purchasing Receiving.Vendor

Accounting

Ordering

Document Cur r ent Pr ocesses

Manual outputAutomated output

Organization

I nvoice Receipt

Purchase Order

Requisition Shipping Document

Purchase Order

Approved I nvoice

Purchase Order

Payment


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Name: Pay Ven dor

O bj ect ive: To fu lfill con tr act ual ob liga tion s t o t he ven dor p er th e c on tr act for good s an dmaterials received.

Desc rip tion : P r in tin g a n d t r an sm it tin g a ch ec k a ft er r eceip t of a pp ved Ve nd or In voiceon the date comput ed based on the payment term s.

Stakeholder : Vend or , Accou nts Payable

O utput : Payment Check

Tr igger : Scheduled p ayment d ate

Input : App roved Vend or In voice, Vend or C ont ract , R eceipt , Pu rch ase O rde r

M etr ics: None

Value Ad ded: Fulfillment of Vend or C ontr act

Da ta Need ed : Ven d or , Ven d or C on tr a ct , Ven d or I n voice , P a ym en t (Da te, Am ou nt , B an k)

Frequency: Weekly

Respon se Time: 2 hou rs

Volume: 500 payments

Prob lems: Payment er ror s in discount calcu lat ions

Pr ocess Profile

Document Cur r ent Pr ocessesExample


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Process Analysis

Analyze Trend sReview Local MarketAdopt ChangesPr ocess ReservationEnter Order

Pr esent CuisinePr esent BillReceive Or der Schedule Order Prepare CoursesAnalyze UsageForecast RequirementsPlan MenuAcquire IngredientsMainta in Ingredient InventoryPlan Staff Acquire Staff Trai n Staff Schedule Staff

Evaluate Staff Per formanceInspect FacilitiesPlan MaintenancePerform MaintenancePr ocure Facilities and Equipm entAcquire & Maintain Info SystemsReceive MoniesPay MoniesUpdate General Ledger Perform Cash ManagementMonitor Financial Performance

P O

P OP OP OP O

La Nouvelle GrabbagueOperat ions

Chef

Mai t re d '

Order ingWaiters

Staff Maintenance

Accounting

PersonnelPlanning

SU

BOBOBO

P O

P E

SU

SUBOBOSUBOBO

P EP EP E

P OP OP OP O

BO

P OP OP OP OP OP O

BOBOBOBOBOP E

SU

SU

SUSU

P EP EP EP EP E

BOBOBO

Pr ocess Owner Performance

P OP E

==

Both Policy and PerformanceSuppor t

BOSU

==

Stakeholders

ProcessWine Steward

Customer

Vendor


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How to Use Pr ocess/Or ganization Matr ix

Customize to suit your needs The following cell values might make more sense in your busine ss

P = Who is accountable for this processWhose head will be on the block if this process fails

S = Who supports or participates in the process

A = Who reviews or approves

CD = Who is the direct customer for this process

CI = Who is the indirect customer for this process


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Identification of Problems

Solicit problems/issues processIdentify the stakeholders impacted by the problem

Assoc iate with processes

Assoc iate with goals

Quantify the impact of prob lem

Identify the nature of problemData-orientedSystem limitationHuman-oriented

Store in repository

Assign team responsibility


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DescriptionOrganizational

Entity Not

There Not

Accurate Not

Feasible Not

There Not

Correct Not

Feasible U nio n T r ai ni ng Policy

HumanSystem LimitationData

Prepared By: Project :

Problem Worksheet


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Existing business systems, automated and manual

Organizational responsibilities

Current files/databases

Systems under development

Technology platforms

Measures of satisfaction/effectiveness

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Inventory of Cur r ent Systems


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BPR Methodology Overview

10. Analyze TechnologyRequirements

11. Determine OrganizationalImpact

12. Address Human ResourceIssues

13. Perform Cost/ Benefit / Risk Analysis

14. Develop Transition Plan

9. Incorporate Process QualityManagement


5. Analyze CurrentProcesses

7. Redesign Processes


4. Develop Top -DownConceptual Process Model

3. Benchmark Processes

1. Plan the RedesignProject

2. Define ProjectExpectations


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Redesigned Process Ideas

Inputs

Data Needs

Mission and Goals

Problem Analysis

Process Analysis

Data Needs

Out -of -the -BoxThinking

Reengineer the Pr ocess


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Do you want to

just redesignorreengineer the process?

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Business System Requirement Analysis

How does a typical system project star t?

Enterp r ise Architectu re plann ing

Business Need (M&A or M ajor change)

Outdated system or technology


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Current Situation (example) M anual Process for Accounts Payable

A/P r econciles thr ee documentsand prepares checks

A/P

Vendor

Purchasing Warehouse

P.O. ReceiptDocument

Check Invoice


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Case 1 Process Automation Company A Imaging Technology

They ar e using Imaging Technology butmanual reconciliation

A/P now:Reconciles thr ee documentsPrepares checks

Pr oductivity increased 25%

A/P r econciles thr ee documentsand prepares checks

A/P

Vendor

Purchasing Warehouse

P.O. ReceiptDocument

Check Invoice


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Case 2 process redesign Company B shar es dat a and automates matching

Vendor

D/B

Purchasing Receiving

Invoice Check

Receipt

DataP.O. Receiving and A/P both only

add add itional data bysharing common P.O. data

A/P r econciles well -organizedand mat ched data instead of documents



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Case 3 Process Reengineered Company C Reengineers the Process

Only complete shipmentsaccepted Only

Pur chasing can change a PO

Receiving validates the shipmentreceipt online

A/P tr usts r eceiving so noreconciliat ion necessar y

o vendor invoice


D/B

PurchasingReceiving

Vendor

Check

ValidatesReceiptP.O.


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Business Process ReengineeringPolicy a nd P r ocedur es

Organization

Technology

BusinessProcess

Redesign

Processes

Customer/Vendor/Alliances

Customer/Vendor/Alliances


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Business Process Reengineering

1) Question the validity or need for the process in thebroader picture can you totally eliminate it?

2) Can this process be outsourced?

3) If outsourced, how will they organize the process?

4) Can we do internally what the outsourcer could do?


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Question the validity of the process

Ensure that all the problems are addressed

Can you do the whole process in one step?

Capitalize on data sharing

Eliminate non -value -added processes.

Re-sequence or use parallel processes to improve performa e.Eliminate handoffs (Combine processes.)

Replace a specialist s function so that non -specialists can handle itwith automated decision making business rules. The specialist onlyhandles exceptions.

Replace all pre -approvals after -the fact reportingReplace after- the -fact reconciliation with front -end edits, validation,and quality checks.

Explore new technologies

Refine Pr ocess Using Redesign Pr inciples


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Eliminate redundant data entry and storageMaximize data sharing with internal and externalstakeholdersRefine process design based on data sharing

pdc

Steps

Capitalize on Data Shar ing


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Performance Development Corporation, 2002. All Rights Reserved.9/17/2010 58B-920

pdc

Analyze TrendsReview Local MarketAdopt ChangesProcess ReservationEnter OrderPresent CuisinePresent BillReceive OrderSchedule OrderPrepare CoursesAnalyze UsageForecast RequirementsPlan MenuAcquire IngredientsMaintain Ingredient InventoryPlan Staff Acquire Staff Train Staff Schedule Staff Evaluate Staff PerformanceInspect FacilitiesPlan MaintenancePerform MaintenanceProcure New Facilities/EquipmentAcquire and Maintain Info SystemsReceive MoniesPay MoniesUpdate General LedgerPerform Cash ManagementMonitor Financial Performance

Guest

Table

Staff

Reservation

Course

Menu Line Item

Other Establishment

Ingredients

InvoiceVendor

FacilityFurnishings & Equipment

Bill

General Ledger

Order

Process

Entity

RRCCRRC

R

R

RR

C

R

R

R

R

R

RCU

UU

R

RR

C

R

URRR

R

CRRURRRRR

R

RR

RR

R

RR

RR

RC

R

R

RUCRU

RRRRRRR

RC

R

CR

R

C

R

RR

R

RRRC

R

R

CUR

C = CreateU = UpdateR = RetrieveD = Delete

Data Shar ing Matr ix (Pr ocess vs Entity)


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Review problem analysis summary from Task 5

Add any problems which may be created by the newdesign

Resolve the problems and refine the processes

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Steps

Ensur e Pr oblem Resolution


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Example

Matching Errors Accountingpractices

Automatesharable records

Eliminate paper items

Extended Problem Resolution Table

Problem Name Cause Prevention Recommendation

Delivery errors Partialshipment

No partialshipments

Use data base

Payment errors Matching Eliminate paper Use data base

High cost Laborintensity

Automate process Simplify steps

Receiving errors Lack of training

Training & audit Automate validation

Ensur e Pr oblem Resolution


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Employer/ Employee

CRM

CentralOfficeManagement

PaymentProcessing

ComplianceOfficer/ Examiner

Review

Commission

UpperManagement

ScheduleInspections

SH430

Prepare forInspections

SH440

ConductInspection

SH450

PrepareReportsSH460

Follow-UpInspection

SH480

PreparePenalty OTC

SH490

Plan Inspections(Routine & Other)SH420

Complaints/ Inquires

IdentifyCritical Areas

Review &Approve

CasesSH470

Violations

Approve GeneralDuty Citation

Close Case

NoViolations

Violations

ViolationsAbated

Review &Approve

PenaltySH500

ApprovePenalty

Superior Court/

OAL

PenaltyOTC

OTC

Gain Approval

ExtensionRequests

WorkIntake/

ComplaintsSH400

IdentifyTargeted Areas

Support

High PriorityCasesSH410

Fatalities &3 or more injuries

Agency Referrals DHSS

DHSS Case

DHSS Case

1

Referrals

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Redesigned Process (Example)

4.5.3 Redesigned Pro cess Map - PEOSH 1


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Process Profile (example)

OBJECTIVE:

DESCRIPTION

PERFORMER:

STAKEHOLDERS/CUSTOMERS:

TRIGGER:

Redesigned Process

SH 50 Process Payment

Provide support for the deposit transmittal of funds from the General Funds to thecorrect Business Account.

Receive all Checks or Internet Payments with Payment Stub containing identifying information for:

* Permits, Licenses, Certificates, Registration* Inspection Fees from Insurance Companies* Penalties* Public Record Information

Create a transmittal to accounting and deposit payment within 24 hours of receipt into a General Fund

Upon notification create a transmittal to move payment om the General Fund into the correctBusiness Account.

Create an invoice for Boiler Inspection Fees owed to NJDOL from Insurance CompaniesPayment Processing

Payment Processing, Accounting, Insurance Companies

Payment Receipt


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Process Profile (example) contd.INPUT: INPUTS from:

OUTPUT : OUTPUT to:

DAT A USED:

VOLUME/FREQUENCY:

Redesigned Process

Checks, Internet Payment Employer, EmployeePayment Stub Employer, EmployeeInsurance Company Inspections Insurance Company

Deposit Transaction AccountingInvoice for Inspection Fees Insurance Company

EMPLOYEREMPLOYEEVIOLATIONINSPECTIONPAYMENT

DOL ACCOUNTINSURANCE COMPANY INVOICE

# of Checks received Asbestos 200 -350 a monthBoiler 2,000 a monthMines 30 a month


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Process Profile (example) contd.BUSINESS SYSTEMS M ODULES:

POTENTIAL TECHNOLOGY:

RELATED PR OCESSES:

QUALITY METR ICS:

BASELINE PROCESS REFER ENCE:

SIGNIFICANT CH ANGES: ( Will guide bu siness r ules)

Championing a BPR Initiative

Payment ProcessingDocument ManagementCase T racking/Workflow Management

WebDocument Management

To: SH40 Issue Permits, Licenses, and Certificates

% Checks deposited within 24 hours

12.4.1.5 Manage Collection of Fees13.4.2.4 Manage Collection of Fees14.4.2.7 Manage Collection of Fees

The most significant change in this area is the centralization of Payment Processing and theimplementation of Payment Stubs for all Fees and Penalties Tighter controls will ensure Checks are processed within 24 hours All payments will be made via Certified Check or Credit Card Payment on the internet. An interface tothe Accounting System will provide better control over transactions processed


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Plan

Analyze

Redesign

Plan Tr ansition


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Prototype the Pr ocess

Sub -Tasks8.1 Develop prototypes

8.2 Incorporate technology

8.3 Assess feasibility of redesign process8.4 Determine skills required

8.5 Review with sponsor


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pdc

Prototyping

Prototyping

What to Expec

Proof of concept

Feedback for redesign refinement

Insight into downstream activities Feasibility of process Skills that may be required Potential organizational effects


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When to Prototype

Drastic changeComplex

processesew

technology

Political situation


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Plan

Analyze

Redesign

Plan Tr ansition


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Total Quality Management TQM

Mission : Continuously improve the

ability to achieve the quality

objectives for products,

services, and resources


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Define deliverables for a core process

Identify customers of each major process(internal/external/ultimate)

Define customers expectations and perception of quality Develop metrics for quality of each deliverable

Develop metrics for internal quality objective.

Incorporate metrics as part of process

Incorporate additional entity/attributes

Develop continuous improvement mechanism

Refine process definitions/profiles

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Tasks:

Incor por ate Quality Management


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Develop Metr ics

Pr ocess Metr ics Template

Number of late or incorr ect payments

Productivity of payments

- payments per staff member

- cycle time

Vendor

Vendor

Receiving

Accounting

Number of Vendor shipments rejected:

-for quality

-incomplete shipm ent-wrong shipment

Number of validation err orsmade by r eceiving

Receiving,Purchasing

Accounting

ReceiveShipment

Pay

Vendor

Pr ocess Owner MetricsCustomer Process

Example


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pdc

Refine Data Entities and Pr ocesses

Data Entity AttributeRequisition Stakeholder Satisfaction (M1)Purchase Order Timeliness Indicatior(M2); E rr or Code (M3)Receipt Shipment R ejection (M4); R eceipt Validation (M5)Payment Payment Er r or Code (M6)

Data Entity Refinement Template

Example


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Demings Solution

9/17/2010 74

Plan

Do

Check

Act

pdc

Process Quality Management


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Quality Feedback Process

Modify Implement Output

Monitor andr epor t qu ality

QualityStandards


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pdc

Apply existing continuous improvement mechanism

If Continuous Improvement mechanism does not exist in yourorganization, use this project to implement it

If a new effort is required, provide education and tra ning

Continuous Impr ovement Mechanism


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Plan

Analyze

Redesign

Plan Tr ansition


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New decision/business rules New internal and external users New process locations

New organizational structures, procedures

pdc

Analyze Technology Requirements

Assessment of hardware, software:

What is required ?

Is existing technology suff icient?

Is new technology necessary and mature?

Any technology required for QM?


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New roles Continuous updating of knowledge Continuous upgrading of skills

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Or ganizational Readiness for ew Technology

Existing technological infrastructureSophistication of current usersRate at which new technology can be absorbedAbility to conform to new standardsPotential training effortPotential support effort


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Policies

Procedures

Responsibilities for redesigned processes Owner Performer Support

Quality assurance

pdc

Or ganizational Change Documentation


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pdc

Example

Or ganizational Changes Needed

-

-

-

Resource requirementsRelocation of 20 Full Time Equivalents from Accounting .

Organizational structure changesNone immediately; but may position Accounting for futucombining of roles.

Organizational responsibility changes (business rules)Receiving accepting shipments authorizes vendor payment, andAccounting no longer does manual reconciliation and focuses moreon education and quality assurance for Receiving valid ion.

Receiving employees are empowered to accept or reject shipmentsand authorize payment.Vendor must comply to new no invoice and shipment policy .


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Project Implementation Schedule (next steps) Tasks Timing Resources

Organization Transition Plan New structures New reporting relationships Training

Technical Transition H/W, S/W acquisition or development Data Conversion

pdc

Developing a Tr ansition PlanProcess redesign is not complete without a detailed

road map that shows how to get to the new environment


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Potential Pr oblems

Management acceptance and support

Stakeholder buy-in


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Define mission, goals, objectives, opportunities and their burningissues

1 hour Presentation Review Redesigned processes related to their expectations

Participate in Top down Process Model Validate current environment documentation Review Redesigned processes related to their expectations Assign priorities in the Transition Plan

50% of the Team comes from the user side Data Analyst is continually involved

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How to get Buy- in

Executive Management

Middle Management

User Level


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Establish a charter

Develop business reengineering and continuousimprovement methodology

Build process management expertise

Develop and implement Process Ownership program

Standardize process documentation

Initiate culture change initiatives

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Pr ocess Management Function


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How would you apply this toyour Data Management pr ocesses?

Who are the stakeholders?

What are the processes required to support their needs?

What data you would need support these processes?

What screens and reports users will need?

Who will build the system to support these needs?

What quality metrics you need?

How can you make your tools easy to use?

Who is the Process Owner for these processes?

L L d


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Lessons Learned

1. Project team should be comprised of:

2. Scope the project so that:

3. You may select:

4. Prototype and validate feasibility of new concept5. Do not ignore implementation risks6. The output must include an implementable act lan7. Use an experienced ar bitr ator and adviser if this is your fir st tim

F or Business System Projec

e

The team must have 50% business analysts Core team members must be full -time for the duration

of the project Average Number 4 (minimum 2, maximum 6)

It takes no more than six months Ideal three months Average four months

One or multiple related processes which has singleexecutive or committee in charge


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Self-sufficient data requirementsNo more than four months for the study

a prioriAuthority to question any business policy, procedure, or standard

9/17/2010 88

Strong executive sponsor

Appropriate scope

No constraints

Expand horizon to include external agents

Revolutionary thinking out-of-the-box, butevolutionary implementation

pdc

Pr ocess Reengineer ing - Success Factors


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Presented by:

(Business Process Redesign)

Arvind D. Shah, M anaging PrincipalPerform ance Development Corp oration

Princeton, NJ 08540(609)443-1226

[email protected]


Tha nk You