3 Years of Transformation Research

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3 3 Years of Transformation Research The collaborative work synthesizes three years of research by MIT and Capgemini Consulting on Digital Transformation One of the 30 resulting principles from the Study is about intelligent design; that principle is called Think Design Customers and employees interact, transact and work with organizations through a growing myriad of channels. Their experience during these interactions make them loyal to an organization or cause them to leave forever: it s a key differentiating element. To create the right stage for customer and employee experiences, turn to Design Thinking. Make sure that you apply it throughout your transformation efforts, including the design of your services and processes. Build the right consciousness, desire and capability to design and deliver compelling experiences, from a radical outside-in perspective.

4 Process and BPM are Key Pieces in an Adaptive and Agile Company To get adherence for intelligent design, an organization must follow design patterns Intelligently design the transformations with a focus on business agility, re-usability (to address future complexity) and capability maturity.

5 Cisco BPM Adoption Dozens of Successful Deployments across 7 Discrete Business Entities within 2.5 Years of Cisco/Capgemini/Pega Partnership Capgemini identifies Pega as possible BRMS platform for Cisco and introduces Cisco selects Pega as BPM / BRMS platform Capgemini advocates the establishment of Enterprise BPM Competency Center to enable organization adoption. GSSC selects Pega for Command Center platform. Capgemini operationalizes the Enterprise BPM Competency Center. Awarded PegaWorld 2013 Thought Leadership Award for Cisco Systems Capgemini begins establishment of the first Federated BPM CoE for GSSC Gartner Awards Cisco GSSC with BPM Excellence Award Capgemini delivers rigorous Pega Proof of Technology for EA Pegasystems delivers GSSC ARCH development. Capgemini contributes design review and performance enhancement for GSSC Command Center RMA Capgemini Begins SortP Development Capgemini operationalizes enterprise support model for all Cisco Pega deployments Adoption Strategy Services Supply Chain Asset Delivery Adoption Asset Delivery Commerce Asset Delivery Finance Asset Delivery Supply Chain Asset Delivery Channel Partner Asset Delivery Capgemini delivers PoC for: Collections Service Discount Guidance Tax Exposure Mitigation Annual Policy Renewal more Capgemini delivers multiple successful releases for Sales Discount Guidance Capgemini delivers effort for Collections -ICMS Capgemini delivers effort Supply Chain Capgemini leads effort Channel Partner Enablement Capgemini delivers effort for SCoRE

6 Business Process Architecture (BPA) Process View BPA Document / Understand Socialize Identify / Govern Taxonomy / Hierarchy Framework Modeling Notation Intake Approve Execute 6

7 Business Process Architecture - Taxonomy Structure Definition The Framework is a linking of Business Processes into a taxonomy structure End To End Process Level 1 Level 1 - The critical core business processes that: Are in a non-segment based business process organizational hierarchy Encompass the major categories, within each Value Stream, that produce an End to End Process Provide a framework that is not constricted by function, geography or company boundaries Major Process Level 2 Level 2 - The process categories within an End To End Process that: Represent the major steps and supporting processes that combine to create the top level End to End Process Provide for a high level grouping of related processes Business Process Level 3 Level 3 - Logical breakdown of business process groups as defined in Level 2 that: Separate the related processes into groups of similar activities or actions May contain Individual processes that lead to different outcomes Different processes for completing the same action Level 4 A self contained work unit that represents a single step in an End to End process that: Identifies a triggering event to initiate a set of actions and decisions Contains an measurable event or outcome that indicates the process has completed. Includes a series of logical steps and decisions based on achieving the outcome. Provides logical alternative routes and endings. Identifies processing groups and roles uniquely assignable to the process Process Step Level 4 Work Instructions Level 5 Level 5 - The work instructions related to a single process box in a process flow that: Provides a user with step by step instructions to complete an action There can be many scripts related to an individual process box (e.g., standard journal entry, multi currency entry, intercompany, etc..)

8 Cisco s Adaptive Enterprise Model Transactions Business Business Models User Interaction and Transactions Process Enablement Service Levels Entitlement Decision Support REQUIREMENTS Operations Systems Business Operations Capabilities and Services Applications Services Delivery Policy Data Analytics CAPABILITIES Sense and Respond Maps and GIS B2B and Webservices Business Intelligence Validation Technology Platform Building Blocks Network as the Platform Modelling and Simulation

9 Business Operations Platform Imperative Strategy Organization Software Infrastructure 1-2 Years 3 6 Months 6-10 Years 6-10 Years It is not uncommon for an IT organization to take 5 or more years to make significant enterprise-wide changes; this pace just doesn t support the business initiatives required in a competitive market. The Business Operations Platform Imperative, bpm.com

10 Cisco Services: Scalable Coverage, Deep Experience Cisco Services Covering 128 countries depots $6B+ in spare parts inventory 840,000 parts delivered annually 250,000 service requests quarterly Engineers average 5+ years of industry experience Managing Over 100,000+ Network Devices in More Than 75 Countries Cisco and/or its affiliates. All rights reserved Video Endpoints, 800,000+ IP Phones, and UC Servers Managed HOME 28+ Years of Innovation Leadership Supporting Complex Networks Cisco Confidential 10

11 Global Service Supply Chain (GSSC) ibpm Business Case Business Objectives The Challenge GSSC Vision Meet Customer SLA s I.e., 2hr, 4hr, Next Business Day Scalable Business, flat cost 10% YoY RMA growth 6% Revenue Growth Reduce Time To Capability Months-to-Minutes ERP maintenance Costly Change is time-bound Business agility blocked by systems flexibility Proactive Service Supply Chain Real-time visibility to processes Management by exception A platform for collaboration

12 Applied ibpm: Concept to Reality Elements of an informed ibpm Style Pace Layering Meet in the Middle Business Technologists CoE Liberate business process from monolithic ERP Business + IT working together Business SMEs evolving applications in real-time Solve Business Problems Governance Best Practice Reuse / Industrialization Systems of Innovation Systems of Differentiation Systems of Record

13 Systems of Innovation Systems of Differentiation Systems of Record SORT Processing SORT Resolve SORT Routing Asset Recovery Command Hub Backend Entitlement Dynamic Receipt and Disposition Backorder Management Repair Obligation Reconciliation TPL Financial Controls NPI Re-imagined Transportation Management Business Intelligence and Analytics Strategic SSC Modelling GSSC Business Operations Platform Powered by Pega7

14 Origins of the Design Pattern Notion The term originated from architecture i.e., buildings and cities. General purpose language, within a domain specific context, to describe archetypes and reusable components book Design Patterns: Elements of Reusable Object Oriented Software by the Gang of Four becomes a canon for software design.

15 What is a Design Pattern? A Design Pattern is simply a template! The patterns themselves address issues of Functionality- what an instance performs Aggregation- what operations can be performed across a collection of related instances Delegation when one instance gives up control to another instance Consultation when one instance consults some external instance without ceding control Design Patterns need not be purely technical

16 Design Patterns for Reusable ibpm Process-Oriented Business Function + ibpm Capability ibpm Design Pattern Examples: Customer Care Agents, Incident Response Team Examples: Business Rules Engine, Case Management Tools Examples: Incident Management

17 ibpm Design Pattern Categories Categories of Design Patterns Business Process Origination Business Process Monitoring Business Process Improvement Content Management Transaction Management Application Composition Category Explanation Business applications wholly contained within the BPM platform BPM platform applies its rules engine and collaboration capabilities in a monitoring capacity Process visibility, metrics and analytics enable process improvement activities Project artifacts, process artifacts, and reference data are wholly managed within the BPM platform Case Lifecycle Management enables end-to-end transaction management The ability for users to interact with you processes whenever and wherever appropriate Sample Patterns Routine Work Automation Agent Processing Non-Routine Work Automation Sense and Respond Analyze and Report Wrap and Renew Decision Strategy Incident Management Root Cause Analysis Document Management Correspondence Management Master Data Management Receive Respond Route Research Report Resolve Headless Rules Engine Webservice Integration Point User-defined application experience

18 Wrap and Renew Dynamic Receipt and Disposition (DRD) Incident Management Implemented FY13 Asset Recovery Command Hub implemented in FY14 Primary work of Asset Recovery function outsourced ERP/B2B Still Drives Business (Accounting) Same Asset Recovery Team/Same Tools - add RADAR/BEE case mgmt.

19 Headless Rules Engine Service Order RMA Tool Processing (SORTP) Legacy Applications call Pega WS for Validation Validation Rules are 100% administered by the business

20 Command Center Pattern Install Foundation Extend the Platform Reap Rewards Command Center: Order-to-Return End-to-End Visibility Incident Management (ITIL) Problem Management (ITIL) Command Center: Source-to-Stock Prioritize work Inventory Availability Asset Management Branch Workstreams RMA Demand Management Headless Rules Engine SORT Resolve/Routing Cust Sat (fewer holds) Savings Efficiency Dynamic Receipt and Disposition Reduce TPL Cost Accelerate availability of Critical Parts

21 Q & A

22 Contact Info Andrew Mathieson BPA Strategist Phil 22