BPM at Ericsson. Corporate Process Governance versus Regional Realities and Business needs. Bonn May 15 th
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1 BPM at Ericsson Corporate Process Governance versus Regional Realities and Business needs Bonn May 15 th
2 Short facts Founded: 1876 in Stockholm, Sweden President and CEO: Hans Vestberg Headquarters: Stockholm, Sweden Employees 2011: *104,525 Net Sales 2011: SEK billion (USD 32.9 billion / EUR 25,4 billion) 179,8 187,8 208, NET SALES (SEK BILLION) 2011 * year end YEARS OF INNOVATION Bernd Efferz BPM at Ericsson Ericsson AB Page 2
3 This is Ericsson We provide: Communication networks Services to network operators Enablers to multimedia service providers Our joint venture provides: ST-Ericsson; semiconductors and wireless platforms THE PRIME DRIVER IN AN ALL-COMMUNICATING WORLD Bernd Efferz BPM at Ericsson Ericsson AB Page 3
4 50 billion connected devices We have a vision of 50 billion connected devices by We do not just connect places and people but also machines and devices. Anything that benefits from being connected will be connected. Bernd Efferz BPM at Ericsson Ericsson AB Page 4
5 BPM at Ericsson Corporate Process Governance versus local process management realities and business needs. Ericsson s process governance setup Standardized and harmonized processes Regional business realities and requirements Change & improvement framework and ways ahead How to accelerate savings via process management in a fast changing business environment? Bernd Efferz BPM at Ericsson Ericsson AB Page 5
6 Ericsson Group Management System (EGMS) Elements EGMS at a glance Ericsson Business Process Core elements for major units Risk based assessments Bernd Efferz BPM at Ericsson Ericsson AB Page 6
7 Ericsson Business Process Governance Bernd Efferz BPM at Ericsson Ericsson AB Page 7
8 wanted position FOR PROCESSES E2E PROCESS EXCELLENCE Delivers, by configuration of sub-process components, increased value for customer and increased efficiency in selected, defined E2E processes cross-function MEASURABLE VALUE Delivers measurable value to Ericsson and this is recognized by Ericsson s customer and Ericsson bottom line VALUE REALIZATION Value through high usage and usability with outside in view. ALIGNED PROCESS AND IT EBP provides a foundation for a coherent, seamless, integrated Ericsson Process & IT roadmaps to secure Strategy to Execution STRATEGY ALIGNMENT Considers future state and transformation connected to Business strategy and how we work with Business process maturity level 4 (Excellent) by 2013 Bernd Efferz BPM at Ericsson Ericsson AB Page 8
9 Ericsson Strategy Cycle and input to BPM Fulfill Ericsson stakeholder's expectations on direction and performance by providing information and insights for strategic decision making setting the direction and strategies for Ericsson deploy strategies into execution through priorities, targets and programs agilely act on new opportunities Strategy cycle Process deployment Bernd Efferz BPM at Ericsson Ericsson AB Page 9
10 Ericsson organizational Chart Process Owner CEO Hans Vestberg RESEARCH Jan Färjh Process Owner Process Owner Process Owner Process Owner JOINT VENTURES BU SUPPORT SOLUTIONS Per Borgklint BU GLOBAL SERVICES Magnus Mandersson BU CDMA MOBILE SYST. Rima Qureshi BU NETWORKS Johan Wibergh ST-ERICSSON Bernd Efferz BPM at Ericsson Ericsson AB Page 10 GROUP FUNCTIONS Communications Helena Norrman Finance Jan Frykhammar HR & Organization Bina Chaurasia Legal Affairs Nina Macpherson REGIONS Sales & Marketing Jan Wäreby Strategy Douglas L Gilstrap Technology & Portfolio mgmt Ulf Ewaldsson North America Angel Ruiz Latin America Sergio Quiroga da Cunha Mediterranean Nunzio Mirtillo Western & Central Europe Anders Runevad Northern Europe & Central Asia Robert Puskaric Middle East Anders Lindblad Sub-Saharan Africa Lars Linden India Fredrik Jejdling South East Asia & Oceania Arun Bansal China & North East Asia Mats H Olsson IPR & Licensing Kasim Alfalahi Didier Lamouche C U S T O M E R S
11 Region Western and Central Europe Organization Chart HEAD OF REGION Anders Runevad Process Responsibles STRATEGY & BUSINESS DEVELOPMENTProcess Tobias Jenssen Responsibles FINANCE & EFFICIENCY LEGAL AFFAIRS Carl Mellander Process Ted Hermans Responsibles MARKETING & COMMUNICATIONS Process HUMAN RESOURCES & ORGANIZATION Stephen Hall Responsibles Paul van t Hooft Process Responsibles Process Responsibles ENGAGEMENT PRACTICES Ozgur Tohumcu Process Responsibles GCU VODAFONE Torbjörn Possne GCU DEUTSCHE TELEKOM Nils de Baar CUSTOMER UNIT UK & IRELAND Chris Houghton OPERATIONS & COMPETENCE CENTER Jean-Claude Geha COMMERCIAL MANAGEMENT Camilla Vautier Process Responsibles CUSTOMER UNIT WEST EUROPE Stefan Koetz CUSTOMER UNIT CENTRAL EUROPE Emil Nilsson Bernd Efferz BPM at Ericsson Ericsson AB Page 11
12 RWCE process roles and responsibilities Local Process Driver responsibilities: Process governance in EGMS LPR Head OCC Process roadmap and deviation handling Process management methodology and assessments LPD Cross function/border coordination Consultancy services PS PS PS Line Management and Process Specialists responsibilities: Process documentation Process execution Process measurements Process improvements LPR Head of EP LPD PS Line Management PS PS PS LPD LPR Head of FI LPD LPR Head of Operational Unit (.) Bernd Efferz BPM at Ericsson Ericsson AB Page 12
13 BPM at Ericsson Corporate Process Governance versus local process management realities and business needs. Ericsson s process governance setup Standardized and harmonized processes Regional business realities and requirements Change and improvement framework and ways ahead How to accelerate savings via process management in a fast changing business environment? Bernd Efferz BPM at Ericsson Ericsson AB Page 13
14 Ericsson Business Process Bernd Efferz BPM at Ericsson Ericsson AB Page 14
15 Sales Business Process Bernd Efferz BPM at Ericsson Ericsson AB Page 15
16 BPM at Ericsson Corporate Process Governance versus local process management realities and business needs. Ericsson s process governance setup Standardized and harmonized processes Regional business realities and requirements Regional change and improvement framework and ways ahead How to accelerate savings via process management in a fast changing business environment? Bernd Efferz BPM at Ericsson Ericsson AB Page 16
17 three key OPERATOR (our Customer) CHALLENGES Modernization Consolidation Outsourcing Cloud Business Efficiency Challenge Transform Simplify Bundling Quality Personalization Choice Speed Customer Experience Challenge Run Operate Communication evolution Verticals M-2-M Mobile Broadband 2 sided business models Business Innovation Challenge Grow Expand Bernd Efferz BPM at Ericsson Ericsson AB Page 17
18 Regions CHALLENGES Extreme price competition Strong Asian players Business Efficiency Challenge Transform Simplify Macro uncertainty Consumer confidence Operator revenues Customer Experience Challenge Run Operate Merger & Acquisitions Extend Service capabilities Invest in verticals Business Innovation Challenge Grow Expand Bernd Efferz BPM at Ericsson Ericsson AB Page 18
19 BPM and Change & Improvement Framework Vision Mission Organizational Strategy & Objectives How to effectively manage this High Level Operations Process Management Portfolio Management Management of On-going Operations (recurring activities & producing value) Management of Authorized Programs & Projects (projectized activities & increasing value production capability) Combine Business Process Management and Region Change and Improvement Initiatives Bernd Efferz BPM at Ericsson Ericsson AB Page 19
20 BPM at Ericsson Corporate Process Governance versus local process management realities and business needs. Ericsson s process governance setup Standardized and harmonized processes Regional business realities and requirements Change & improvement framework and ways ahead How to accelerate savings via process management in a fast changing business environment? Bernd Efferz BPM at Ericsson Ericsson AB Page 20
21 RWCE Efficiency Board To Drive our Regional Change and Improvement Portfolio
22 EB Charter Bernd Efferz BPM at Ericsson Ericsson AB Page 22
23 High Level Process Align Balance Monitor and Control Assess Candidates Categorized Components Prioritize Authorized Components Approve Selection Authorize Plan Align Portfolio Balance Portfolio Monitor & Control Portfolio Identify & Categorize Idea Evaluate Portfolio Scenario Make Portfolio Scenario Decision Launch Portfolio Scenario Setup & Prioritize Balance Portfolio Resources Balance Portfolio Finances Make Portfolio Plan Decision Communi - cate Portfolio Plan Monitor Portfolio Report Portfolio Status Bernd Efferz BPM at Ericsson Ericsson AB Page 23
24 Potential Programmes M&A Excellence High Efficiency Operations Best In Class Inventory & Working Capital Workforce Mobility & Flexibility Bernd Efferz BPM at Ericsson Ericsson AB Page 24
25 Full RWCE Change Mgt Solution Steering Group = Efficiency Board Sponsor = Region Head Monthly Reporting M&A Excellence High Efficiency Operations Workforce Mobility & Flexibility BIC Inventory & Working Capital Engagement Practices Commercial Mgt OCC Finance Sourcing IT OD&E Security HR REFM Legal Internal Communications etc Bernd Efferz BPM at Ericsson Ericsson AB Page 25
26 Are we in the right race? EB Efficiency Board LINE Bernd Efferz BPM at Ericsson Ericsson AB Page 26 How is our performance? Did we get the result?
27 Timing & Content Q1 Q2 Q3 Q4 Q M Q Q Q M M M M M M M Monthly Performance Review Ad-Hoc Approval of new items Decisions on stopping/postponing on going changes Quarterly Strategic Alignment Bernd Efferz BPM at Ericsson Ericsson AB Page 27
28 regional Portfolios to Steer Bernd Efferz BPM at Ericsson Ericsson AB Page 28
29 Monthly Status Reports October September Bernd Efferz BPM at Ericsson Ericsson AB Page 29
30 Summary How to accelerate savings via process management in a fast changing business environment? Ensure company wide process governance and secure top level management ownership Standardize and harmonize processes top-down Analyze local business environment and requirements Establish a regional cross function / cross organization steering board (Efficiency Board) Decide on scope and prioritize regional change portfolio and associated investments Monitor on progress and value realization Bernd Efferz BPM at Ericsson Ericsson AB Page 30
31 Bernd Efferz BPM at Ericsson Ericsson AB Page 31
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