Holistic BPM: From Theory to Reality

56 Pages·2007·5.77 MB·English

Holistic BPM:
From Theory to Reality
Simon Dale
Senior Vice President and Chief
Technology Officer, SAP APJ
Business Process Management - historically
(cid:164) SAP APJ2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /2
Businesses Have Not Fully Leveraged “Processes” Yet
Businesses want to understand and change their operational
processes quickly…
…but their processes are: misunderstood, inconsistent, hard-
wired, or inflexible
Businesses want to deploy automated processes fast
…but most do not have a way to do this
Businesses want a real time view of operations and the ability to
intervene…
…but there is typically no way to achieve this without a massive
effort, yielding inflexible solutions
Businesses want to see results and value fast…
…but they cannot invoke change without expensive, risky projects
with long payback periods
Companies Want Change At The Speed Of Business
(cid:164) SAP APJ2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /3
The Next Frontier: Reducing “Time to Change”
Years
Business
Process
Months Change
Weeks
Product
Lifecycle
Days
Hours
Process
execution
Minutes
time
1900s 1920s 1940s 1960s 1980s 1990s 2000s
Source: Gartner
(cid:164) SAP APJ2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /4
The Fundamental Challenge
Manual Steps and Ad Hoc Integration
(Repetitive Data Entry, Paper Approval, ETL, FTP, P2P, etc)
Order Mngt
Marketing Fulfillment
GF GF
au au
pn pn
c c
t t
io io
n n
a a
l l
(cid:127) No formal linkage between business process and application system
(cid:127) No capability to manage and measure the business process
(cid:127) An inflexible IT infrastructure that does not support changes in processes
You cannot win at BPM unless you integrate with your
applications & leverage existing infrastructure
(cid:164) SAP APJ2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /5
Flexible business demands automating and optimising
business processes (linking People/Process & Systems)
Current Approach
Manual Steps
= business function
Marketing Application Order Mgmt App Fulfillment Application
Marketing Collections
Inventory Management
Future process
Customer Order Entry
Division
Receivables
Shared
Service
Marketing,
Billing,
Supplier
Handles Inventory -VMI
Outsourced
Shipping through 3PL’s Collections
(cid:164) SAP APJ2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /6
What Do Organisations Want from BPM?
Model Business Processes
Modeling For Documentation & Compliance
Modeling For Redesign & Optimisation
Modeling For Execution
Manage Business Tasks Across Applications
Manage and resolve business tasks centrally in one work list
Business Process Integration / Automation
Integrate all business applications and automate the message flow
between systems with an executable process model
Involve Business Users in Automated Processes
Manage by exception
(cid:132) Alerting in case of exceptions (technical and business)
(cid:132) Approval of the state of an integration process with a human call-out
(cid:132) Trigger a production workflow within your SAP application
Application Workflow Management
Manage production workflows within applications
… All This, Whilst Leveraging Existing IT Investments
(cid:164) SAP APJ2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /7
How much process can we put into software?
Goals – why software-supported processes? Inhibitors – why aren’t they all in software?
Efficiency – achieve more with less Time – too little, too late
Effectiveness – actionable information Cost – return is smaller than investment
Compliance – adhere to laws and rules Skills – too much specialized know-how
Speed – “confirm the order right away” Resistance – “you can’t automate this”
Improve the way process is put into software!
(cid:164) SAP APJ2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /8
Evolution of Business Process Management Technology
1990s 2000s 2010s
Operational Competitive
Efficiency Differentiation
Business Process Business Network
Reengineering Transformation
+ ERP + Enterprise SOA
Key Business Drivers
‘BPM 2.0‘
Business Process Analysis
Process Globalization
(cid:132) Flexibly enable the complete
(cid:132) Focus on Business Process
(cid:132) Everybody, everywhere business process lifecycle
Reengineering
(cid:132) Process of “me“
(cid:132)Enterprise Modeling
(cid:132)Process Modeling
Business Agility
(cid:132)Simulation/ Analysis
(cid:132)Process Documentation (cid:132) Process Insight
(cid:132) Process Flexibility (cid:132)S2S BPM (Automation)
‘BPM 1.0‘ Business Transformation (cid:132)Process Collaboration
(cid:132) Differentiate through process
(cid:132)Human Tasks
(cid:132) Focus on singular aspects of (cid:132) Compliance and transparency
business processes (cid:132)BAM
Real World Awareness
(cid:132)Workflow Automation (cid:132) Everything, everywhere (cid:132)Business Rules
(cid:132) Business events
(cid:132)EAI (Integration) (cid:132)Business Content
(cid:164) SAP APJ2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /9
Benefits of Business Process Management
>> The ARIS Platform enabled us to
Reduced process costs 10 - 15 %
conduct a process analysis, determine
the inefficiencies of selected processes
and identify the potential for reducing
Increased quality / reduced number of errors 20 - 30 %
costs when taking appropriate action <<
HenrikAmbak, Head of IT / Mike Stone, Head of
Reduced process throughput times 10 - 30 %
Corporate Controlling
Reduced training time / expenses 10 - 30 % Total BPM project investment (including
all costs) represents < 20 %of the
identified and validated cost savings
Reduced number of (internal) support requests 15- 30 % potential.
Reduced number of customer complaints 20 - 30 %
Increased forecast accuracy 15 - 30 %
Dramatic decrease in the number of
internal process instructions
>> The processes in the individual work areas could be streamlined
(currently down from
and shortened considerably. For example, processing time dropped
27,000 to 2,800 – with a further
drastically (…). In the Dealer Service Center (DSC), process costs
reduction in sight)
dropped by 58 percent and staff requirement by 67 percent. <<
IS Report, 7+8/2005, BMW Financial Services Switzerland
project report on the use of ARIS
(cid:164) SAP APJ2007, Holistic BPM: From Theory to Reality / Simon Dale / BPM 2007 /10