BPM and Innovation Introduction (1) Professor Charles Møller, Ph.D. Center for Industrial Production Aalborg University, Denmark

Transcription

1 BPM and Innovation Introduction (1) Professor Charles Møller, Ph.D. Center for Industrial Production Aalborg University, Denmark

2 Professor Charles Møller, Ph.D. Teaching B.Sc. & M.Sc. Industrial Engineering B.Sc. & M.Sc. Information Technology e-mba, Management of Technology (MMT) Chair Center for Industrial Production, Aalborg University Business Process Innovation Danfoss A/S & Aalborg University Research Business Process Management Enterprise Systems Management Supply Chain Management Eduation Ph.D. degree (Industrial Engineering), Aalborg University M.Sc. (Electrical Engineering), Technical University of Denmark Employment Professor in-residence, Center for Electronic Business, San Francisco State University Associate Professor, Aarhus School of Business, University of Aarhus Associate Professor, Department of Production, Aalborg University Consultant, Interconsult Management A/S (now EDB Gruppen) Programmer & Analyst, Brüel & Kjær A/S Programmer, IBM Denmark A/S 2

3 Why do we need BPM? Supply Manufacturing Sales Distribution 3

4 Globally Shared Pain Points Pressure on Profit Margins Pressure to reduce cost Pressure to innovate faster Increased collaboration 4

5 Definition of Business Process Management Source: Hill et al., 2006 BPM is a management discipline that treats business processes as assets to be valued, designed and exploited in their own right. It is a structured approach employing methods, policies, metrics, management practices and software tools to manage and continuously optimize an organization's activities and processes. It aims to improve agility and operational performance. It treats processes as organizational building blocks with as much (if not more) significance as functional areas and geographic territories 5

6 Agenda Overview of Business Process Management & Innovation The Evolution of Process Management Grundfos Case: Be>Think>Innovate Serious Game: INNOV Wrap-up 6

7 Business Process Management and Innovation (1) Titel på Engelsk Tema Business Process Management and Innovation Forretningsprocesser i forsyningskæden Forudsætninger Kurset bygger på videre på den studerendes grundlæggende forståelse af centrale forretningsprocesser som produktudvikling og leverance, som opnået i kurserne Virksomhedsøkonomi og budgetsimulering (VØB) samt Produkt/Marked (PM) på BAIT3 og tilsvarende på GBE. Omfang 1 ECTS 7

8 Business Process Management and Innovation (2) Litteratur Snabe, J. H., Rosenberg, A., Møller, C., & Scavillo, M.: "Business Process Management: The SAP Roadmap", Bonn, Boston: Galileo Press, 2008 Kompendium i ledelse og udvikling af forretningsprocesser (artikler udleveres undervejs). Kursusansvarlig Charles Møller, Center for Industriel Produktion, Aalborg Universitet, charles@production.aau.dk Kursusholder(e) Charles Møller Ole Høgfeldt Jedrzejczyk Undervisningens organisering Kurset består af ti kursusgange samt den studerendes selvstændige studieindsats. Undervisningen gennemføres som en kombination af forelæsning og små illustrative øvelser. 8

9 Learning Objectives Mål Den studerende skal efter gennemførsel af kurset kunne: demonstrere forståelse af de organisatoriske og teknologiske problemstillinger vedrørende procesledelse identificere og beskrive forretningsprocesser i virksomheder og forsyningskæder anvende hensigtsmæssige metoder til modellering og analyse af forretningsprocesser designe og konstruere effektive forretningsprocesser realisere forretningsprocesserne i virksomhedssystemer Ovenstående læringsmål forventes opnået Dels gennem deltagelse i forelæsninger, dels gennem arbejdet med de øvelser og opgaver, der stilles i kurset og dels gennem projektarbejdet, hvor der bl.a. følgende spørgsmål skal kunne besvares: Hvad er en forretningsproces? Hvilke forretningsprocesser eksisterer i projektvirksomheden? Hvordan påvirkes disse processer ved jeres løsningsforslag? Hvilken konsekvens og værdi har ændringerne? Hvilke teoretiske principper anvendes? 9

10 Overview of Business Process Management and Innovation Tuesday 8/9, Introduction to BPM and Innovation Tuesday 15/9, Business Process Discovery and Modeling Tuesday 22/9, Business Process Analysis and Design Tuesday 29/9, Business Process Management and Intelligence Tuesday 6/10, Business Process Development and Innovation Thursday 9/10, Enterprise Systems Management Tuesday 20/10, Enterprise Architecture Tuesday 3/11, SAP Business Suite Thursday 5/11, SAP Business Workflow/ BPM (1) Tuesday 10/11, SAP Business Workflow/ BPM (2) 10

11 My expectations towards you are Læs Træn Opgaveregning, cases, småøvelser undervejs Gruppearbejde I will ask each group to prepare a presentation of a specific method/paper Present at class Deltag Diskuter, spørg The slides will be part of the reader portfolio Anvend I jeres projekter! Charles Møller 11

12 Reflections Forudsætninger I hvilke fag har I tidligere stiftet bekendtskab med forretningsprocesser? Eksempler hvor du selv har være kunde i en forretningsproces Gode eksempler? Dårlige eksempler? 12

13 Agenda Overview of Business Process Management & Innovation The Evolution of Process Management Grundfos Case: Be>Think>Innovate Serious Game: INNOV Wrap-up 13

14 BPM 6-Sigma Charles Møller 14

15 The Origin of Process Thinking Charles Møller 15

16 Definition of Business Processes Source: Wikipedia/Davenport A business process or business method is a collection of related, structured activities or tasks that produce a specific service or product (serve a particular goal) for a particular customer or customers There are three types of business processes Management processes, the processes that govern the operation of a system. Typical management processes include "Corporate Governance" and "Strategic Management". Operational processes, processes that constitute the core business and create the primary value stream. Typical operational processes are Purchasing, Manufacturing, Marketing, and Sales. Supporting processes, which support the core processes. Examples include Accounting, Recruitment, Technical support. An end-to-end business process begins with a customer s need and ends with a customer s need fulfillment Process oriented organizations break down the barriers of structural departments and avoid functional silos. Charles Møller 16

17 The Evolution of Process Thinking Process Maturity Process Lifecycle Business Process Business Process Re-engineering Total Quality Management Business Process Management Lean Manufacturing Industrial Engineering Toyota Production System Six-sigma Charles Møller 17

18 Value Stream Mapping 18

19 Business Process Taxonomy Management process (Controlling Processes): Devlelop and manage human capital; Manage IT, Financial Resources, External relationships, Knowledge, Improvement, Change... Core process (Primary Processes): creates value, contact to business partners Product development, procurement, manufacturing, distribution Support process (Enabling processes): derivative processes Cost accounting, human resource management, EDP, legal issues 19

20 APQC Business Process Reference Model 20

21 Corporate Services Core Processes Strategy SAP Business Process Landscape 1.0 Develop and monitor strategy Suppliers Customers & & Partners 2.0 Create new products & services 3.0 Create market and sell products & services 4.0 Deliver products & services Partners 5.0 Manage the ecosystem 6.0 Develop and monitor financials & control 7.0 Recruit, develop and retain staff 8.0 Deliver IT services 9.0 Purchase goods and services 21

22 An Example of a Process-oriented Company 22

23 Supply Chain Operations Reference Model (SCOR) Plan Plan Plan Plan Plan Deliver Source Make Deliver Source Make Deliver Source Make Deliver Source Supplier YOUR COMPANY Customer Customer s Customer Internal or External Return Return Internal or External 23

24 The business process in context SIPOC model Management & Innovation Supplier Inputs Process Outputs Customer Foundation Charles Møller 24

25 The birth of the process lifecycle Deeming wheel or Stewart Cycle Plan Act Do Check Charles Møller 25

26 Six Sigma: DMAIC model DMAIC model for process improvement Define Control Measure Improve Analyze Charles Møller 26

27 Six Sigma: DMADV model Design For Six Sigma Define Verify Measure Design Analyze Charles Møller 27

28 Gartner s BPM model Source: Gartner Define Optimize Model Analyze Discovery Simulate Monitor Deploy Execute Charles Møller 28

29 Process Maturity Model Capability Maturity Model Integration (CMMI) by Software Engineering Institute Level 2 Repeatable Level 3 Defined Level 4 Managed Level 5 Optimized Level 1 Initial Any process is better than no process! A good process is better than a bad process Even a good process can be made better! Michael Hammer. Charles Møller 29

30 Management Process 1 Develop the strategy Source: Kaplan & Norton, Translate the strategy Define mission, vision and values Conduct strategic analysis Formulate strategy 5 Test and adapt the strategy Define strategic objectives and themes Define measures and targets Select strategic initiatives Strategic plan Strategy map Balanced scorecard StratEx Conduct profitability analysis Conduct strategy correlation analysis Examine emerging strategies 3 Operation plan 4 Plan operations Dashboads Budgets Improve key processes Proforma P&L s Develop sales plan Plan resource capacity Prepare budgets Monitor and learn Hold strategy reviews Hold operational reviews Charles Møller Execute 30 processes and initiatives

31 Leadership Processes Performance Business Excellence European Foundation for Quality Management (EFQM) Enabling Processes Policy and Strategy People and Knowledge Customers Customers People and Knowledge Resources Society Partnerships Partners Innovation and learning Charles Møller 31

32 Business Process Re-engineering Davenport, & Short 1990 Develop Business Vision and Process Objectives Prioritize objectives and set stretch targets Identify Processes to be Redesigned Identify critical or bottleneck processes Understand and Measure Existing Processes Identify current problems and set baseline Identify IT Levers Brainstorm new process approaches Design and Build a Prototype of the Process Implement organizational and technical aspects Charles Møller 32

33 Sales Manufacturing Operations HR Finance The Journey Towards Process-orientation English & Baker, 2006 Stage Functions vs. processes Functional organization Function and process organization Process-centered organization Process-oriented organization Charles Møller 33

34 Agenda Overview of Business Process Management & Innovation The Evolution of Process Management Grundfos Case: Be>Think>Innovate Serious Game: INNOV Wrap-up 34

35 Grundfos Case Grundfos is the largest manufacturer of pumps, and one of the leading players in the industry In addition to pumps, Grundfos also manufactures pumps, engines and advanced control electronics for pump solutions Grundfos is based in Denmark but has been through a major globalization process during the recent years, and the group is now represented with 75 companies in 42 countries The revenue of Grundfos is around 2.5 billion Euros and the organization has around 18.,000 employees worldwide Grundfos summarizes their core values with the slogan: BE responsible > THINK ahead > INNOVATE. Grundfos was founded in 1945, and it is a family -owned business with a considerable emphasis on local engagement, commitment and responsibility In 1995, a new CEO challenged these traditional values and launched a new strategy aimed at making Grundfos a competitive global player Charles Møller 35

36 Journey Towards Business Excellence Future production concept defined (MR13) BE within Production groups PROBE 1 The Danish Quality award Process Management Second EQA submission Third EQA submission OCD 4 Process Assessment PROBE The journey towards excellence initiated Company value document OCD 1 OCD 2 PROBE2 First EQA submission OCD 3 PROBE 3 Process Assessment Fourth EQA submission Process Assessment EQA Winner OCD 5 PROBE4 Charles Møller 36

37 Grundfos Process Landscape Charles Møller 37

38 RADAR Process Assessment Charles Møller 38

39 Grundfos Governance Structure Charles Møller 39

40 Grundfos Governance Structure Decision and development structure IS Board Group Management + BPOG SMEG User Workshops BPOG = Business Process Owner Group SMEG = Subject Matter Expert Group GPO = Global Process Owner GPL = Global Process Manager RPL = Regional Process Manager LPC = Local Process Consultant Charles Møller 40

41 Agenda Overview of Business Process Management & Innovation The Evolution of Process Management Grundfos Case: Be>Think>Innovate Serious Game: INNOV Wrap-up 41

42 INNOV8: A BPM Simulator INNOV8 is an interactive, 3-D educational game designed to bridge the gap in understanding between IT teams and business leaders in an organization IBM SOA & WebSphere Innov8 It is a "serious game" that teaches October Business 31, Process 2007 Management (BPM) through an interactive simulation environment 42

43 INNOV8 Goals and Objectives The goals of INNOV8 are To introduce the basic concepts of Services Oriented Architecture (SOA) and Business Process Management (BPM) to future business and IT leaders To address a skills gap in SOA and BPM To provide a complimentary education offering that can be incorporated into IBM s existing BPM curriculum The objectives of INNOV8 are Upon successfully completing the game and subsequent classroom activities and discussion points, the student should be able to: Understand the basic business process management lifecycle, from process discovery and modeling through process monitoring and management. Understand additional key business process management terminology and concepts 43

44 Opening Cinematic: Intro and Mission Logan (protagonist) has been recruited to save AFTER Inc. Mike (AFTER Inc CEO) sets up situation provides laptop and gives Logan her mission: Investigate critical process Find Sam Archer in IT 44 Slide: 9

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47 Slide: 12 Level 1 Process Information Discovery Level 1: Understanding and Validating the As-Is Model FINANCE IT OPERATIONS HR ENTRY 47

48 Level 1: Navigation walk W A S D left jog right Ctrl + S = sprint walk Space Bar = jump Right mouse click = camera turn left right Shift + = jog Ctrl + = sprint 48 Slide: 13

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52 Organisering af spillet Gå sammen I grupper på 2 eller 3 Eventuel omkring et bord Hen filen innov8.zip (fra disk eller stick) Udpak og installer, husk DirectX (XP) Start spillet Følg instruktionerne I programmet Vi har til kl Noter points 52

53 Agenda Overview of Business Process Management & Innovation The Evolution of Process Management Grundfos Case: Be>Think>Innovate Serious Game: INNOV Wrap-up 53

54 Required Reading Roadmap to Business Process Management By: Jim Hagemann Snabe, Ann Rosenberg, Charles Møller, Mark Scavillo Features Obtain a comprehensive framework for implementing Business Process Management Find insights and experience from leading companies on their BPM journey Learn how to benefit from serviceoriented architecture using BPM Sap Press 69,95 Euro, ISBN

55 Wrap-up Snabe et al, 2008 Lecture 1-5 Read part 1+2 Lecture 6-10 Read part 3+4 Reader Introduction to BPMN - (PDF 359K) by Stephen A. White - IBM, May Next-time Install Microsoft Visio 2007 (Trial) 55

56 Overview of Business Process Management and Innovation Tuesday 8/9, Introduction to BPM and Innovation Tuesday 15/9, Business Process Discovery and Modeling Tuesday 22/9, Business Process Analysis and Design Tuesday 29/9, Business Process Management and Intelligence Tuesday 6/10, Business Process Development and Innovation Thursday 9/10, Enterprise Systems Management Tuesday 20/10, Enterprise Architecture Tuesday 3/11, SAP Business Suite Thursday 5/11, SAP Business Workflow/ BPM (1) Tuesday 10/11, SAP Business Workflow/ BPM (2) 56