Transformacion Empresarial y Evolucion BPM

7/27/2019 Transformacion Empresarial y Evolucion BPM

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Enterprise Transformation &

the Evolution of BPM

Paul Harmon

Executive Editor

Business Process Trends


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Business Process Management (BPM)

A comprehensive, strategic approach toorganizing company change

At the high-level, a management

philosophy that emphasizes focusing on

processes and process performance

At the lower-level, a set of new toolsand technologies that can facilitate

better processes and more agile change


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We Have Lots of Technologies to Use

Business Rule

Management Systems

SEI's CMM for IT

1980s 1990's 2000s

Management

Business

Process

Redesign

Information

Technology

Workflow

Software Modeling Tools and Methodologies

(CASE, UML, MDA)

Quality

Control Total Quality

Management

Porter's Value

Chains

Business Process

Reengineering

Rummler-Brache

Performance Improvement

Performance

Improvement

Activity Based

Costing

Six Sigma

Lean

BPM

EAI

Packaged Software

(ERP, CRM)

Balanced

Scorecard

SCOR VCOR

BPO


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Today: Horizontal & Vertical Alignment

Sales

Department

Executive

Management

Strategy

Committee

VerticallyIntegrated

Measures,

Managers, and

Resources

Employees & IT Applications and

Infrastructure

Horizonally Integrated

ProcessesFrom Suppliers to Customers


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An Aside on the Meaning of Process

Value Chain

Business Process Business Process Business Process

ProcessProcess Process

Sub-Process Sub-ProcessSub-Process

Sub-Sub-Process

Activity Activity

Sub-Sub-Process

Architecture

SCOR Framework

Process Redesign ProjectsBusiness Rule Projects

Six Sigma ProjectsIT Automation Projects

SAP Process Models


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A Process-Centric Model

Strategy

Level

Business ProcessLevel

Specific Process

Value Chain

Plans

& Goals

ImplementationLevel

Process Automatedby IT SystemsProcess Performedby Employees

Physical Plant and Hardware Used.


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Three Critical Areas

Strategyand Goals

Specific

Activity

Strategy

Level

Business

Process

Level

Business Process

Implementation

Level


BP Architecture

BP Analysis& Redesign

Organization

Performance

Mangement and

Measurement Issues

Involved inExecuting Actual

Business Processes

and Activities

Human ResourceArchitecture IT Architecture

Data

Architecture

Application

Architecture

Network

Architecture

Application

Designs

and Code

Database

Designs and

Data

Management

Systems

Technology

Architecture

Hardware Architecture

Job

Design

ActivityMeasurement

Plan

Activity

Management

Plan

Job Aids,

Training

Programs,

Knowledge

Management

System

Activity/

Performance

Monitoring

System

Plans, Budgets,

Hiring, Resource

Allocation,

Feedback,

Consequences

Human-ITInterface

Model

Screens

and

Reports

Logical

Level

Physical

Level

Lean Six

Sigma IT

BP Management


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The Process Management Alignment ProcessOngoing B usiness

Strategic Proces s

Business

Model

Management

Plan

Performance

Measures

Business P rocess A rchitecture

CEO

Value Chain

SubProcess

Activi ties

Process

SubProcess

SubSubProcess

Activi ties

Organizational Alignm ent

See that models, measures and managem ent plans arealigned with those above and below

Process

Hierarchy

Management

Hierarchy

Line

Managers

Middle

Managers

Supervisors

Bus Process Bus Process

Process


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BP Management

The Senior Management BP Team A Business Process Architecture

Process-Based Performance Measures Managers Trained to Use the Tools

A Management System that RewardsManagers for Using the Tools


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The Business Process Architecture

Strategyand Goals

Specific

Activity

Strategy

Level

Business

Process

Level

Business Process

ImplementationLevel


BP Architecture

BP Analysis

& Redesign

OrganizationPerformance

Mangement and

Measurement Issues

Involved inExecuting Actual

Business Processesand Activities

Human ResourceArchitectureIT Architecture

Data

Architecture

Application

Architecture

Network

Architecture

Application

Designs

and Code

Database

Designs and

Data

ManagementSystems

Technology

Architecture

Hardware Architecture

Job

Design

Activity

Measurement

Plan

Activity

Management

Plan

Job Aids,

Training

Programs,

Knowledge

Management

System

Activity/

Performance

Monitoring

System

Plans, Budgets,

Hiring, Resource

Allocation,

Feedback,

Consequences

Human-IT

Interface

Model

Screens

and

Reports

Logical

Level

Physical

Level

Lean SIx Sigma IT

BP Management


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The Business Process Architecture

A key tool for process management A high-level overview of the value chains and

key processes that make up the organization

An alignment of strategic goals, value chainsand key processes

A clear-cut way to monitor the performance ofthe value chains and processes (KPIs)

A BP Architecture is NOT an IT EA Architecture


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BP Frameworks

A BP Framework is a template for a BPArchitecture

It includes an process vocabulary,

domain process models for at least 2-3

layers of processes, measures for

processes, and best practices. BP Frameworks are set to revolutionize

BP Architecture Development


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The Supply Chain Councils SCOR

The best example of the good horizontalBP architecture is provided by the

Supply Chain Councils SCOR

framework

Created in past 5 years by consortium

of some 700 companies Defines a top-down approach to

organizing the BP architecture of acorporate supply chain process


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SCOR MODEL: Level 1

Supply

Chain

DeliverMakeSource

Plan

Return


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One Value Chain Framework

PlanPlanPlan Plan

Resources

Organization

DesignChain

BusinessDevelopment

Enabling Processes

R3.1

Receive,

Validate &

Approve

R3.2

Assign

Account

Team

R3.4

Obtain

Customer

Needs

R3.5

Establish

Customer

Profile

AmendResearch

AssistSource

Make

Deliver

Return

Supply

ChainProcess

Design Sell

Customers

Level 3 Subprocesses in Relate to Named Account

Level 1 Processes

Level 4

Activities Specific to Particularprocess and company

R3.3

Define

Engagement

Model

Tables for Each Process and

Subprocess

Information on specific metrics

and best practices to implement

this subprocess

CustomerChain

ReviseAnalyze

Develop

Level 2 Processes: Made to

Stock, Made to Order,

Engineered to Order

Level 2 Processes: Relate to

Intermediary, Relate to Grouped

Account, Relate to Named Account

Level 2 Processes:

Expansion, Extension, and

Creation

Level 2 Processes:

New Technology, New

Product, Product

Revision

R3.6

Publish

Business

Rules

R3.7

Release

to Sell

Relate

Level 0.

Organization

Divided into 4 Major

Domains

Level 2

Variations

Level 3

Subprocesses

Metrics and Best Practices for

Subprocesses

Integrate Market Contact


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OR Frameworks and 6 Sigma

There are already efforts aimed ataligning SCOR and Lean Six Sigma

They fit very naturally, since both are

very oriented towards measurement

and SCOR provides an ideal way to

help Lean Six Sigma teams identifyareas to focus on

Several consulting companies arefocusing on this effort


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Another Aside: Frameworks and BP Maturity

The process is ad hoc. Few

activities are explicitlydefined and succ ess

depends on individual effort

and heroics.

Basic project management

processes are established to

track cost, schedule, and

functionality. The necessary

discipline is in place to

repeat earlier successes

The process f or both

management and

engineering is documented,

standardized and integrated

by an organization

methodology

Detailed measures of the

process and product quality

are collected. Both the

process and products are

quantitatively unders tood andcontrolled.

Continuous process

improvement is enabled by

quantitative feedback for theprocess and from piloting

innovative new ideals and

technologies.

1. Initial

2. Repeatable

3. Defined

4. Managed

5. Optimizing

Organizations with an imm ature mastery of their processes.

Organizations with an mature mastery of their processes.

A Framework

Provides all of the

basic structure and

documentation to

move an organization

from 2.5 to 4.5

Combining a Framework with Six

Sigma is a good way to deal with 5.

Extending a Framework

to support PackagedApplications, BPMS, or

BAM will provide even

stronger packages.


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The Process-Centric Company Today

Most companies want to move toward a moreprocess-centric organization, but

They are overwhelmed with changes

With technologies that dont integrate

With management and measurement

systems that arent designed for process

They simply dont have the time and people

to achieve a process-centric company if they

approach it with first generation methods


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What Is Needed?

We need to move faster- Otherwise we getlost in the day-to-day details

We need a comprehensive approach

Otherwise we dont achieve enoughalignment between the different technologies

We need an approach that can appeal to

both business and IT managers


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For More Information

www.bptrends.com

[email protected]


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EnterpriseEnterprise

TransformationTransformation

Integrating BusinessIntegrating Business

Process Management (BPM)Process Management (BPM)

with Lean/Six Sigmawith Lean/Six Sigma

DeploymentDeployment

byby


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Must We Change ?

Change is not useful

It is just an intellectual exercise to try to be

different

Customers dont care about change as long as

we provide good service and quality, on time

and for a reasonable, controlled price

Employees will resist change

Change is challenging, but necessary!


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What Does the Economy & EnvironmentTell Us About Change?

75% of the product sold in a supermarket did not exist 7 years

ago

The time to launch a car ( from conception to sale ) has beenreduced from 6 years to 36 months

Internet sales were representing less than 2% in Europe 5

years ago, now it is covering 15% of the transactions

The importations of textile from China have increased by

300% in Q1 2005

Changes impact day to day life as well as our business,We must adapt to these changes to stay competitive!


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Is Your Business Changing ?

On the template :1 list the names of the 5 main customers you had 5 years ago

2 list the top 5 products & services contributing to your sales or

revenue numbers 5 years ago

3 list the 5 main regions / countries you supplied 5 years ago

4 Do the same for the current situation ( 2004/5 )

5 Calculate the % of change


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Today5 yearsago

Today5 yearsago

Today5 yearsago

% change = ( nb items in

order ) / 15 =

Main Customers Main Products Main Regions

Your Companys Evolution


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Enterprise TransformationProgram Deployment Emphasis

EnterpriseTransformation

Redefine

The

Industry

ExtendedValue

Chains

Business ProcessReengineering

OptimizeValue

Chains

PrimaryValue

Chains

Breadth of Change

ChangeObjecti

ves

Value Optimization

Business Context Focus BPM Value Chain Opportunity Prioritization

Program Expansion

Value Realization

Strategic

Competitive Focus Enterprise Value Optimization

Program Integration with the Business

Competitive Advantage

Process RedesignValue Expansion

Leverage

Best

Practices

CoreBusiness

Processes

Process ImprovementValue Capture

Improve

Process

Efficiency

FunctionSpecific

Projects

Tactical

Content Focus Known Opportunities

Proof-of-Concept Pilots

ROI Justification


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Evolving Organization Design to Support ProgramMaturity

CEOExecutiveLeadership

Middle

ManagementLevel

Functional

GroupLevel

Phase 1 Pilot ProgramPhase 2 Program Value ExpansionPhase 3 Value Chain OptimizationPhase 4 Enterprise Transformation!

Suppliers Customers


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Company Specific EnterpriseTransformation Roadmap

Vision 200X

World Class

Customer Service Level

& Enterprise Performancee

200X200X

Processes

Customers/Markets

No commitment to a common

planning system - many legacyapplications

Limited ability to support onesystem implementation

Time 3Time 3

World Class

Process

Performance

Learning

Organization

Product Focus

Multiple Processes

Functional Focus

SystemsCulture

Business focuson internalperformance

Performance

Management

Time 1Time 1

Customer Satisfaction Metrics

Improved Customer Retentionthrough harvesting strategies

Focal Point for

EnterpriseTransformation

Six Sigma Expertise Development

Develop common process definitionusing Business Process Management

Introduce Lean/Flowconcepts

Process improvementprojects

Key Metrics DataGathering & Reporting

External BusinessProcess Focus

Cross Functional

Project Teams

Target Markets

Target Profitability and Pricing

Customer / supplier

system interface

End to End ProcessFocus

Elimination of legacy

systems

System reportedstandard scorcard

Market segmentation bycompetitive requirements

World classservice levels

Standard Processes &Scorecard Metrics

Seamless processintegration

Market research defines key growthareas

Improved Customer Loyalty

Marketfocused

Data Based DecisionMaking

Supplier / customer

interaction through e-

portals

Real time Process

performance data available

One commonplanning system

Routine performance

metrics drive process

improvement

priorities

Process improvements

through Project Teams

Internal Lean Six

Sigma Expertise

Reward systems

aligned with company

objectives

Team Recognition vs.

Individual

Strong CustomerRelations Performance standards

& expectations

established

Standard work and

RACI clearly defined

HPWO

People

Career

Development

supports company

strategy

Lean competency

Time 2Time 2

Appropriate

metrics to drive

desired behavior

Clear RACI for customer interaction

Lean concepts generallyapplied across all processes

Continuous

Improvement is a

way of life

MarketLeader/PreferredSolutionsProvider

Multiple Site SpecificInstallations of the samesystem


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Phases of Program MaturityPhase 4Phase 3Phase 2

Pilot Program

Value CaptureProgram Value

Expansion

Value Chain

Optimization

Enterprise

Transformation

Phase 1

Program Design& Preparation

Leadership

Development

Opportunity

Identification

Execution Skills

Development

Organizational Context Determines Program Needs!

Content Focus

What is Lean? What is Six Sigma?

What does a Lean Six Sigma

Program look like?

Are we ready for Lean Six

Sigma?

What are our goals?

How do we develop

leadership support? How do we manage the

culture change?

What are leaderships roles &

responsibilities?

How do we capture known

improvement opportunities?

How can we prioritize &

scope our issues into specific

projects and project charters?

What tools will be taught to

Green Belts? Black Belts?

What success criteria will be

associated with certification?

Context Focus

How do we develop theinfrastructure to support

program growth?

How do we maintain

accountability?

Where else can we leverage

Lean Six Sigma?

How do we engage leaders of

other functions? Divisions? How do we begin to engage

cross-functional projects?

How do we improve guidance

of the Lean Six Sigma team?

How can we identify &

prioritize projects of greater

business impact?

What improvements can be

made to the core business

processes?

What unique curriculums will

be required for specific

process areas?

What tools apply best in

transactional / engineering?

What customer channels andproduct lines drive our

business?

How can we strengthen our

primary value chains?

How do we engage suppliers

& customers?

What customer and strategic

information is needed to drivevalue chain optimization?

Who will champion and drive

value chain projects?

What resources and

methodologies should we use

to target and prioritize value

chain improvement

opportunities?

How do we execute value

chain project?

What inputs and leadership

interaction is needed for

value chain optimization?

Competitive Focus

How do we integrate andleverage process improvement

efforts across the enterprise?

How do we develop suppliers &

customers to share our business

improvement goals?

What leadership roles must be

developed to manage enterprisetransformation?

How do we better define customer

channel strategies?

How do we ensure seamless

linkage of business strategy to

business process improvement

and resource development?

How do we leverage skilled

resources across the enterprise?

How do we execute enterprise

wide improvement projects?


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Consulting Services

Business Assessment, Organization Design, IT Deployment, Product Development, Advanced Planning,Logistics, Lean Six Sigma Project Management, Advanced Tools Application, Best Practices Expertise

Execution Skills DevelopmentLean / Six Sigma Training, Methodology & Tools Application, Project Execution,

Project Tracking, Review, Results Validation, Certification

Opportunity IdentificationStrategic Reqts, Performance Baseline, Value Steam Assessment,

BPM Deployment, Project Definition, Portfolio Prioritization

Leadership

DevelopmentGoals, Change Mgmt, Roles & Responsibilities,

Infrastructure, Selection Processes, Program Mgmt

Enterprise Transformationusing the .

Program

Design &

Preparation

Building the Capability to Transform the Enterprise!


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Program Design

& Preparation

Leadership

Development

Opportunity

Identification

Execution SkillsDevelopment

Consulting

Services

Pro-Ex

Program

Workshop(1 day)

Deployment

Planning

Workshop(2 days)

Infrastructure

Deployment

Workshop(5 days)

Program

Readiness

Assessment(5 days)

Leading

Strategic

Change(2 days)

Executive

Leadership

Training(1 day)

Champion

Training(3 days)

Management

Training(4 days)

Project

Portfolio

Workshop(2 day)

Value

Stream

Assessment(3-5 days)

Diagnostic

Assessment(5-15 days)

Business Process Management (BPM)

SCOR, DCOR, CCOR Certification(17 days; 12-16 weeks)

Executive

Green Belt

Certification(5 days; 5 weeks)

Awareness

Training(1 hour)

Soft

Skills

Training(1 day)

Essential

Skills

Training(2 days)

Yellow Belt

Certification(4 days)

Kaizen

Workout(5 days)

Green Belt

Certification(5 days; 5 weeks)

Black Belt

Certification(25 days; 5 months)

Master

Black Belt

Certification(30 days; 6 months)

Project

Definition(1 day)

Six Sigma

Lean

Six Sigma Curriculums Design-for-Six Sigma (DFSS)

Transactional Six Sigma

Product Delivery Excellence

Lean Curriculums Lean Product Development

Lean Transactional

Lean Production

Hybrid Traininge-Training Train-Apply-Review

Applied Training & CertificationExperiential Development

Modular Approach to Build True Enterprise Transformation!

Analysis & Design

Tools &

Techniques

Business

Assessments

(S&OP, IT, etc.)

Best Practices

(SAP, RFID)

VCOR

Linking BPM

Value Chains

Supplier

Development

Program

Analytical Software (Minitab, JMP, I-Graphics)

I-Solutions

Behavioral Simulation

Hertzler SCOR Wizard

I-Solutions


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VCOR Integration with the .Value-Chain Operations Reference (VCOR) ModelVCOR

Implementation(Baseline, Benchmark, Analyze,

Identify & Validate)

CCOR Project

Portfolio

Lean Design

DFSS

Design-for-Six Sigma (DFSS) Projects focused on minimizing Process Design and Development

Risk, Uncertainty, and Variation

Lean Six Sigma Lean/Six Sigma Projects focused on minimizing Waste, Variability and Defects in the

Product Development process

TransactionalLean Sigma

Transactional Lean Sigma Projects focused on maximizing Transactional Efficiency, Timeliness

and Yield to optimize information flow in the Product Development

process

Methodology & Resource Requirements

Prioritization &

Implementation

Planning

CCOR Portfolio

Implementation Plan

BPM

Hertzler

I-Solutions


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Enterprise Transformation &Information Technology

Evan J Miller, CEO

Hertzler Systems [email protected]


38/49


39/49

Existing Information Infrastructure

Deployment

Tools

BusinessSystemsProjectTools

Disparate Systems Leave Gaps


40/49

Deployment

Tools

BusinessSystemsProjectTools Measurement

System

The Measurement System Bridges the Gaps


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What the Measurement System Does

Connect => Collect & Alarm => Analyze


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Measurement System Enables Because Repeatable data source for Define &

Measure Phases drives multiple projects

Appropriate level of data granularity

Automatically identify defects through business

system Ask for additional information from process

owners

Forms foundation of Control Phase datasystem

The Measurement System Enables Enterprise Transformation


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Enterprise Transformation

Turning Data into Knowledge

ForEnabling Strategy Execution



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Hertzler / i-Solutions Integration

ERP

SupplyChain

Call

Center

SFA

GainSeeker

Data Mart

Process Owners

Advanced Statistical

Tools

New/Enhanced

Capabilities

Business

Performance

Performance

Manager

Program

Manager

Process

Manager

Business

Objectives

Requires Access to the Right Data by

the Right Tools at the Right Time


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Enterprise Transformation is noteasy Many challenges are faced

translating strategy into results:

How Do You?

Systematically cascade corporate goals

throughout the organization.

Identify, prioritize and resource the

thousands of strategic and operationalprojects needed to implement the strategy.

Ensure that all strategic projects are driven

to completion.

Effectively embed the new/enhanced

capabilities into the organization. Drive consistent execution of the

new/redesigned business processes.

Monitor achievement of the strategy and

make changes mid-course as situation

changes.

Define/Adjust

Strategy

Implement

Strategic

Projects

Execute

Business

Processes

Business

Objectives

New/Enhanced

Capabilities

Business

PerformanceEnterprise

StrategyExecution

Cycle


i-nexus is the leading web-based enterprise


46/49

software solution for helping global companies

translate strategy into results.

Enterprise Transformation Requires

Integration of Objective Flow downM


47/49

ShareholderValue

Cash (Profit)

From Operations

Capital

Employed

Fixed

Assets

Working

Capital

Accounts

ReceivableAccounts

PayableInventory

Advance

Payments

WACC

Quote to Cash

Prepare

Quote

Receive

Order

Plan

OrderProcure Make

Pack &

Ship

Collect

Cash

Prepare

Invoice

Transmit

Invoice

Approve

Invoice

Pay

Invoice

Define Process

Model

Flow-down

Objectives

Select KPIs vs.

Targets (Scorecards)

Prioritise

Causes

Project Charter

Reduce Invoice Defects

Who

What

When

How

WhyScope and Select

Projects

ImplementProject &

Update

Process Model

Debtor Days Control Chart

Integration of Objective Flow-down,

Process Definition, Dashboard

Development and Project Selection

How do we measure the overallM


48/49

People Process

CustomerFinancial

Leadership Capability

Index

Belt Capability Index

Number of Certified

Belts, Sponsors, and

Process Owners

By implementing a Deployment

Dashboard

Process SuccessRates

Project Lead-times

Project Leverage

Index

Project Productivity

Index

Product/Service

Capability

Improvement Indices

Customer

Satisfaction Indices

Net Program

Benefits (Profit &

Capital Employed

Impacts)

Net Benefits/Project Net Benefits as % of

Revenue

Measure relativeimprovement in process

capability not absolute

process capability

Measure the key return onInvestment drivers

Measure customer

satisfaction to validateprocess capability

improvement

Measure the underlying

organizational capability

Measure net benefits that

impact the P&L and

balance sheet only

success of enterprise

transformation?E I


49/49

For More InformationIndustry Showcase featuring Hertzler Systems & i-Solutions

Today at 6:15 p.m.Enterprise Transformation Booth

Leadership Circle Retreat

Aug 11-12, 2005

Lake Tahoe.

Enterprise Transformation WorkshopAug 25-26, 2005

Tempe, AZ

Documents

Transformacion Empresarial y Evolucion BPM