Bpm Implementation - Success Criteria And Best Practice

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BPM Implementation Success Criteria and Best Practice

Alan McSweeney

What is a Business Process? A A business process is a collection of related , structured activities that produce a processes ses are critical to any service or product that meet the needs of a client. These proces organisation as they generate revenue and often represent a significant significant proportion of costs. Order Order

Documenting improvementt and Documenting business processes enables understanding, improvemen provides control November 26, 2009

2

What is Business Process Management (BPM)? • Business

Process Management (BPM) is a method of efficiently aligning an organisation with the wants and needs of clients

• It

is a complete management approach that promotes business effectiveness and efficiency while striving for innovation, flexibility and integration with technology

• As

organisations look to achieve their objectives, BPM attempts to continuously improve processes - the process to define, measure and improve your processes — a ‘process optimisation' process

November 26, 2009

3

Lessons Learned From Large Systems Implementation 80 % More attention on process optimisation 65 % Align systematically to company goals 60 % Pay more attention to understanding the subject area spanned 55 % Implementation of a management information system as part of scope 50 % Outsource project management of the project to a third party 45 % Increase investment in training 35 % Greater employees involvement 35 % Enforce changes more courageously 30 % Identify and capture proof of benefits and saving as part of scope 20 % Avoid big-bang implementations November 26, 2009

4

Processes Are Key To Business Success •

Understanding your processes are key in a number of business initiatives



Often this is done in isolation and in different ways



And using different tools

November 26, 2009

5

A Single, Consistent View of the Truth is Critical •

Having a single repository of business process information enables…..



Common standards



Re-use / best practice



Improved decision support



Significant time savings



= increased efficiency & effectiveness

November 26, 2009

6

Key Business Drivers for BPM •

Save money — Do things better with optimised processes − Build better new processes faster − Know what you are doing (right or wrong) through current process understanding − Get control of parallel processes by consolidating to core processes − Get non-value added work through automation of manual processes Business process outsourcing



Implement ERP software better



Stay ahead of compliance



Move faster through scenario building for agility and policy management

November 26, 2009

7

Benefits of Business Process Management Reduced process costs

10 - 15 %

Increased quality / reduced number of errors

20 - 30 %

Reduced process throughput times

10 - 30 %

Reduced training time / expenses

10 - 30 %

Reduced number of (internal) support requests

• Real

1515- 30 %

Reduced number of customer complaints

20 - 30 %

Increased forecast accuracy

15 - 30 %

benefits from BPM

• Intangible November 26, 2009

benefits also: better information quality 8

How do Organisations Improve? • Major

changes must start at the top

• Ultimately,

everyone must be involved

• Effective

change requires a goal and knowledge of the current process

• Change

is continuous

• Change

will not be retained without effort and periodic reinforcement

• Improvement

November 26, 2009

is continuous

9

Why Business Process Management? • Symptoms

of Poor Business Process Management and

Design − No standard process/method for addressing how to define business requirements and when to improve business processes − When automation of processes is commissioned, “Business” says that they do not always get what they think they have asked for − The processes used to document and communicate business processes and requirements are neither easy nor documented − Our business programs frequently exist in a culture of reacting to cross-functional problems/emergencies − IT has responsibility for creating and maintaining business process flows, business requirements, and business rules November 26, 2009

10

Why Business Process Management and Design — Common Problems 1. Lack of an integrated process for capturing the business domain 2. Techniques that are used are not consistently applied 3. We cannot/do not differentiate key stakeholders’ views and different business views 4. We are working without a common language across business, IT and our other partners/vendors 5. Inadequate root cause level business process analysis yields inadequate business requirements and rules to facilitate process optimisation/automation November 26, 2009

11

Why Business Modelling — The Problems 1. Lack of an integrated process for capturing the business domain 2. Techniques that are used are not consistently applied 3. We cannot/do not differentiate key stakeholders’ views and different business views 4. We are working without a common language across business, IT and our other partners/vendors 5. Inadequate root cause level business process analysis yields inadequate business requirements and rules to facilitate process optimisation/automation November 26, 2009

12

More Than a Picture A Picture . . . .  Provides information  Has no enforceable rigour  Cannot be reused easily  Cannot be updated easily

A Model can be . . . .  Analysed  Reported on  Used to navigate through relationships  Used for simulation  Trigger workflows  Used to drive business process management November 26, 2009

13

Finding the Right Project • Key characteristics of right project − The process or project is related to a key business issue − You have/can get customer input on the issue − Management assigns this project a high priority − Process owner and key stakeholders are defined − The problem is stated as a target or need and NOT a solution − The sponsor of this project can commit time and resources to this project − The business process(es) will not be changed by another initiative at any time in the near future − Focus on: • Which process is the most critical • Which process contributes the most

− Ensure the benefits of an improvement project do not degrade over time

November 26, 2009

14

Critical Success Factors • Linked

to business strategies and goals

• Linked

to customer value

• Ability

to implement incremental value added change

• Ability

to track results and measure success

• Ability

to be aligned with the business

November 26, 2009

15

Successful Business Process Analysis, Design and Implementation Projects Have • Understood

the Business Architecture — Business Process, Metrics, Strategy and Goals

• Engaged • Taken

stakeholders and defined process ownership

an iterative and incremental approach

• Tackled

the right project at the right time

• Implemented

internal and external standards and the right level of governance

• Understood

the role of information

• Incorporated • Achieve November 26, 2009

process improvement

business results with a series of small successes 16

Do Not Ignore Organisational Change • The

failure to manage the human side of business changes is a major contributor to the reasons programme, projects and initiatives fail

• Organisations

may not have the experience necessary to manage the speed and complexity of the large-scale changes

• Managers

are all too frequently concerned with tactical, operational issues and have not had the time to consider organisational changes

November 26, 2009

17

Process Analysis within Service Orientation •

Process Driven Integration − Services Based Integration − Cut integration costs and reduce development



New Business Initiatives − Agility, Growth — New Products and Services − Increased Delivery Channels



Process Improvement − Optimising business processes − Straight Through Processing



IT Regeneration − Enterprise IT Architecture — Aligning more with Business − Legacy Replacement



Extending the Enterprise − Partnering, B2B

November 26, 2009

18

Intelligent Use of BPM • Help

prioritising intelligent cuts: via a business process architecture and a good process measurement system

• Process

Optimisation: BPM teams can quickly examine processes and suggest changes to eliminate waste − Good BPM teams can almost always identify some quick changes that will save 10-30%

November 26, 2009

19

Intelligent Use of BPM • Reorganisations

− Changes in status also require that new processes and business rules be implemented throughout the organisation • Additional

Regulation

− New regulations require new practices and new business rules

November 26, 2009

20

Service Orientation — Aligning IT with Business Customer Service

Governance

Business Drivers Reduce Cost

New Services

Automation of Existing Processes

New Channels

Accountability

Efficient Delivery Of New Services

Support Business Requirements Faster

Dynamic

Shareholder Value

Visibility Better Information insight

Business Requirements

Business Processes

Business Service

Services

Business Service

Business Service

Business Service

Business Service

Services

Services

Services

Services

Standard Integration of Services

Reusable, Standard Services

Web Sites

Legacy Systems

Databases

Core Applications

Trading Partners

Static

IT Assets

AR

November 26, 2009

21

Service Orientation — Aligning IT with Business Customer Service

Governance

Business Drivers Reduce Cost

New Services

Automation of Existing Processes

New Channels

Accountability

Efficient Delivery Of New Services

Support Business Requirements Faster

Dynamic

Shareholder Value

Visibility Better Information insight

Business Requirements

Business Processes

Business Service

Services

November 26, 2009

Business Service

Business Service

Business Service

Services

Services

Services

Services

Standard Integration of Services

Reusable, Standard Services

IT Assets Web Sites

Legacy Systems

Databases

Core Applications

Trading Partners

Static

Mixed IT Systems and Applications

Business Service

AR

22

Service Orientation — Aligning IT with Business Shareholder Value

Customer Service

Governance

Business Drivers Reduce Cost

New Services

Automation of Existing Processes

New Channels

Accountability

Efficient Delivery Of New Services

Support Business Requirements Faster

Dynamic

Business Model

Visibility Better Information insight

Business Requirements

Business Processes

Business Service

Services

Business Service

Business Service

Business Service

Business Service

Services

Services

Services

Services

Standard Integration of Services

Reusable, Standard Services

Web Sites

Legacy Systems

Databases

Core Applications

Trading Partners

Static

IT Assets

AR

November 26, 2009

23

Service Orientation — Aligning IT with Business Customer Service

Governance

Business Drivers Reduce Cost

New Services

Automation of Existing Processes

New Channels

Accountability

Efficient Delivery Of New Services

Support Business Requirements Faster

Dynamic

Shareholder Value

Visibility Better Information insight

Business / IT Gap

Business Requirements

Business Processes

Business Service

Services

Business Service

Business Service

Business Service

Business Service

Services

Services

Services

Services

Standard Integration of Services

Reusable, Standard Services

Web Sites

Legacy Systems

Databases

Core Applications

Trading Partners

Static

IT Assets

AR

November 26, 2009

24

Service Orientation — Aligning IT with Business Customer Service

Governance

Business Drivers

Business Processes Bridges the Gap

Reduce Cost

New Services

Automation of Existing Processes

New Channels

Accountability

Efficient Delivery Of New Services

Support Business Requirements Faster

Dynamic

Shareholder Value

Visibility Better Information insight

Business Requirements

Business Processes

Business Service

Services

Business Service

Business Service

Business Service

Business Service

Services

Services

Services

Services

Standard Integration of Services

Reusable, Standard Services

Web Sites

Legacy Systems

Databases

Core Applications

Trading Partners

Static

IT Assets

AR

November 26, 2009

25

Service Orientation — Aligning IT with Business Customer Service

Governance

Business Drivers

Business Processes Bridges the Gap

Reduce Cost

New Services

Automation of Existing Processes

New Channels

Accountability

Efficient Delivery Of New Services

Support Business Requirements Faster

Dynamic

Shareholder Value

Visibility Better Information insight

Business Requirements

Business Processes

Business Service

Service Oriented Architecture

Services

Business Service

Business Service

Business Service

Business Service

Services

Services

Services

Services

Standard Integration of Services

Reusable, Standard Services

Web Sites

Legacy Systems

Databases

Core Applications

Trading Partners

Static

IT Assets

AR

November 26, 2009

26

Service Orientation — Aligning IT with Business Customer Service

Governance

Business Drivers Reduce Cost

New Services

Automation of Existing Processes

New Channels

Accountability

Efficient Delivery Of New Services

Support Business Requirements Faster

Visibility Better Information insight

Business Process Management

Business Requirements

Business Processes

Business Service

Service Oriented Architecture

Dynamic

Shareholder Value

Services

Business Service

Business Service

Business Service

Business Service

Services

Services

Services

Services

Standard Integration of Services

Reusable, Standard Services

Web Sites

Legacy Systems

Databases

Core Applications

Trading Partners

Static

IT Assets

AR

November 26, 2009

27

Service Orientation — Aligning IT with Business Business Process Improvement

Customer Service

Governance

Business Drivers Reduce Cost

New Services

Automation of Existing Processes

New Channels

Accountability

Efficient Delivery Of New Services

Support Business Requirements Faster

Visibility Better Information insight

Business Process Management

Business Requirements

Business Processes

Business Service

Service Oriented Architecture

Dynamic

Shareholder Value

Services

Business Service

Business Service

Business Service

Business Service

Services

Services

Services

Services

Standard Integration of Services

Reusable, Standard Services

Web Sites

Legacy Systems

Databases

Core Applications

Trading Partners

Static

IT Assets

AR

November 26, 2009

28

Connecting Business and IT Customer Service

Governance

Business Drivers Reduce Cost

Business Analysis

Automation of Existing Processes

New Services

New Channels

Accountability

Efficient Delivery Of New Services

Support Business Requirements Faster

Dynamic

Shareholder Value

Visibility Better Information insight

Business Requirements

Business Processes

SOA Layer

Business Service

Services

Business Service

Business Service

Business Service

Business Service

Services

Services

Services

Services

Standard Integration of Services

Reusable, Standard Services

Web Sites

November 26, 2009

Legacy Systems

Databases

Core Applications

Trading Partners

Static

IT Assets

29

Business Challenges •

Business is facing − − − −



Technology’s typical response − − − − − −



Global business competition Rapid innovation and fast-changing business requirements Regulatory compliance challenges Increasing cost pressures

Slow delivery times High maintenance costs Brittle solutions Stove piped functional applications Redundant development efforts and operations Redundant and costly investment in multiple technical solutions

Can technology be realigned to support the needs of business? November 26, 2009

30

More Information Alan McSweeney [email protected]

November 26, 2009

31

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