Business transformation research: Lessons learned. BTM Management



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Business transformation research: Lessons learned BTM

University of Applied Sciences Northwestern Is a state-accredited university of applied sciences We teach over 8'000 degree students and nearly 40'000 participants in further education Prof. Dr. Axel Uhl Head of Business Transformation Academy at SAP Business Transformation Services Research interests in sustainability and IT, leadership, and business transformation management He completed his master in business information systems and the doctorate in economics. We conduct over 550 research or consulting projects and we have 200 mobility partners 2013 SAP AG or an SAP affiliate company. All rights reserved. 2

Table of contents 1. About the Business Transformation Academy 2. Business Transformation Methodology (BTM²) 3. BTM² in practice: Heat maps 4. Lessons learned

Business Transformation Academy Action areas Mission Statement The Academy creates and offers unique knowledge and expertise on drivers, strategies, and best-practices of large transformation projects. Research Publication Knowledge Sharing Training Consulting Case Studies Articles White Papers PhD Thesis BTA Quarterly 360 Journal Handbook Other Journals BTM² Handbook 360 the Business Transformation Journal BTA-online.com BTA Collaboration Workspace BTA Newsletter Regional events Global conferences BTM² Certification BTPM GBTM Master LEAD (EA Transf.) BPM & OCM Executive Briefings Next Generation Consulting Methods 2013 SAP AG or an SAP affiliate company. All rights reserved. 4

Business Transformation Academy Framework Global Thought Leadership Network A Powerful Expert Community Global Thought Leadership Network BTA s Thought Leadership Network comprises of academics, practitioners and SAP experts. Leading experts from different fields proactively address complex market dynamics and ensure a holistic view in the area of Business Transformation. BUSINESS SCHOOLS CUSTOMERS 2013 SAP AG or an SAP affiliate company. All rights reserved. 5

Table of contents 1. About the Business Transformation Academy 2. Business Transformation Methodology (BTM²) 3. BTM² in practice: Heat maps 4. Lessons learned

Business Transformation Definition excerpt* Business Transformation implies fundamental and complex organizational changes within as well as across companies alongside the value chain; business transformation can also radically alter the company's relations with the wider economic and societal environment. Examples of business transformation types are: Business process outsourcing Business model changes Mergers Acquisitions or Cross functional and (inter- and intra-) organizational restructuring. *Business Transformation Research: http://www.fhnw.ch/wirtschaft/iwi/competence-center/e-learning/business-transformation-academy/business-transformation-research 2013 SAP AG or an SAP affiliate company. All rights reserved. 7

IT programs are now so large and complex they can bring whole companies down Lord Chancellor s Department Courts Computer System 328% over budget 167m USD Federal Health Information System New system development 228% over budget 469m USD Design finished in 2001 differences in development software More than 12 months delay to market; 26% drop in share price Resignation of Noël Forgeard After failing a $1.4bn IT modernisation Kmart started a $500mio SCM project The combination of two failed projects forced Kmart into bankruptcy? Is this anecdotal evidence an accurate depiction of the risk of IT projects? 2013 SAP AG or an SAP affiliate company. All rights reserved. 8

Data basis: 3,607 projects, worth $84 billion Project archaeology Count Desk study FOIA requests Budget data Organisations 27 37 58 120 Projects 679 275 1,029 1,624 Project type Project size (2010 USD millions) Software 88 Average 25m Total value 84bn Other 5 System type Other 38 6 Infrastructure 26 ERP Project length (years) Average 3.8yrs 17 7 13 MIS HRM SCM 2013 SAP AG or an SAP affiliate company. All rights reserved. 9

World wide largest study on IT projects: Key learning IT projects often turn into Black Swans Frequency (Percent) 40 35 30 25 20 15 IT and infrastructure projects have similar median cost over-runs In fact, IT projects are far more likely to run out-of-control than expected: more than 400% over- incidence of outliers!! As more change is involved as more likely it is to become a black swan. 10 5 0-100 -50 0 50 100 150 200 n=3,607 Infrastructure projects IT projects 250 300 350 400 Cost risk (Percent) 2013 SAP AG or an SAP affiliate company. All rights reserved. 10

Black swans have high cost, schedule and benefit risks, which are hidden in the fat tails of IT portfolios Average risk All projects Outliers cost overrun Cost overrun Schedule overrun +90% +44% +473% +68% Even if the average cost overrun is low, risk of cost overruns is high Black Swans mean very high cost and schedule risks Nearly 1 in 5 (18%) of projects that get the green-light turn into Black Swans Benefits shortfall -3% -9% 18% 2013 SAP AG or an SAP affiliate company. All rights reserved. 11

Different types of ICT projects have significant differences in performance Cost risk Schedule risk Benefits risk Black Swan risk Software implementation 100% 27% 27% 17% IT architecture 28% 19% 0% 13% IT infrastructure 30% 24% 45% 12% Communication technology 29% 11% 0% 18% Other 8% 15% 19% 14% 124% 25% 29% 16% n = 5,378 High Risk 2013 SAP AG or an SAP affiliate company. All rights reserved. 12

Business Transformation Call for action Findings Low success rate of business transformation projects (less than 40%) Source: Isern et al. (2009) Lack of holistic management approaches Source: Winter, Uhl (2011) Project 33% Methods 8% Change (People) 14% 75% are failing because of non-technical reasons e.g. non acceptance of the solution, skill problems, communication problems, problems with project resources Technical 24% Business support 21% 25% Failure because of technical reasons e.g. demands can not be mapped, sizing problems, problems with connecting legacy systems Source: Seven Reasons Why Information Technology Projects Fail (2011) 2013 SAP AG or an SAP affiliate company. All rights reserved. 13

Business Transformation Methodology (BTM²) Shifting towards benefit oriented management From Technology delivery To Benefits delivery Value for money low level task monitoring Value for money benefits tracking Loose linkage to business needs Business case with integration with business drivers IT implementation plan Change management plan Business managers as victims Business managers involved and in control Large set of unfocused functionality IT investments that are sufficient to do the job Stakeholder subjected to Stakeholders involved in Trained in technology Carry out technology and project audits Educated in exploitation of technology talent harnessed Obtain business benefits then review with learning leverage learning Reproduced with permission from Benefits : Delivering Value from IS and IT Investments by John Ward & Elizabeth Daniel, John Wiley & Sons, 2006 2013 SAP AG or an SAP affiliate company. All rights reserved. 14

Business Transformation Definition excerpt* Business Transformation In response to the limitations of single methods and management approaches and in view of the complexity of business transformation, successful Business Transformation can be seen as a: Meta- discipline that is dedicated to the integration and extension of individual management disciplines. In this way Business Transformation is the holistic management of extensive, complex changes on which the organization's future success strongly depends. *Business Transformation Research: http://www.fhnw.ch/wirtschaft/iwi/competence-center/e-learning/business-transformation-academy/business-transformation-research 2013 SAP AG or an SAP affiliate company. All rights reserved. 15

Enablement Direction Business Transformation Methodology (BTM²) Detailed approach to Business transformation Business transformation has to balance economic, social, and technical aspects. Meta Strategy Framework of individual disciplines: Guidelines, leadership, culture, values, and communication Value Risk Strategy management provides - together with risk and value management - direction for the transformation effort; Processes IT Transformation Organizational Change Competence & Training Processes: business transformation implies the change of business processes and vice versa IT is an enabler for processes (change) People -centred disciplines facilitate the necessary will and skills of key groups Program/Project Program management serves as an overarching discipline for managing transformation efforts 2013 SAP AG or an SAP affiliate company. All rights reserved. 16

Business Transformation Methodology Provide the Big Picture for the Upper BTM² (2010) Transform the entire company / and process owners BPM (2000) Optimize and reengineer business processes / Process owners and functional experts ASAP (1990) Implement / Functional and technical experts 2013 SAP AG or an SAP affiliate company. All rights reserved. 17

Table of contents 1. About the Business Transformation Academy 2. Business Transformation Methodology (BTM²) 3. BTM² in practice: Heat maps 4. Lessons learned

Black and white swans: Can you tell the difference? 2013 SAP AG or an SAP affiliate company. All rights reserved. 19

The BTM 2 Big Picture Meta Orchestration of individual disciplines: Guidelines, Leadership, Culture, Values and Communication Direction Enablement Strategy Value Risk Processes Program/Project IT Transformation Organizational Change Competence & Training As-Is Data Collection Baseline Analysis 360 Strategic Risk Assessment Determine Scope of Analysis Program Planning and Governance Business and IT Capability Assessment Set-up & Governance Competence Strategy Analysis of Needs & Maturity Level Value Estimation Risk Identification From Template to Bespoke Inventory Program/Project Integration To-Be Analysis Stakeholder Training Need Analysis Design Business Vision Detailed Business Case Risk Evaluation Identify Improvements/ add Attributes Program/Project Scope Gap Analysis Change Agent Network As-Is Analysis Design Business Model Agree Ownership for Realization Define Risk Response Plan Map Selected Processes Program/Project Time & Cost IT Roadmap Plan Communication Gap Analysis Integrated Transformation Plan Plan Benefit Realization Execute Risk Mitigation Plan Plan Process Implementation Program Quality Solution Architecture Design Performance Project Team Curriculum Development Business Case Execute Benefit Realization Risk Monitoring and Reporting Implement Processes Program Human Resource Mgmt IT Deployment Plan Performance - Business Training Preparation Organizational Model Review and Evaluate Results Risk Review Evaluate Processes Program Procurement IT Operations & Service Optimization Change Readiness Assessment Training Risk analysis Establish Potentials for Further Benefits Risk Improvement Establish CIP Program Reporting IT Lifecycle Change Monitoring Evaluation & Improvement 2013 SAP AG or an SAP affiliate company. All rights reserved. 20

Heat Map Keys activity performed and performed well partly done or done but not particularly well not done or not done well insufficient detail in the case not applicable e.g. if transformation not completed 2013 SAP AG or an SAP affiliate company. All rights reserved. 21

Heat Map: Evolution Vodafone Global Back Office Transformation Success: new operational model and cost savings achieved Meta Re-organization into Shared Service Centers, standardized processes for HR, SC and Finance + new systems Direction Enablement Strategy Value Risk Processes Program/Project IT Transformation Organizational Change Competence & Training As-Is Data Collection Baseline Analysis 360 Strategic Risk Assessment Determine Scope of Analysis Program Planning and Governance Business and IT Capability Assessment Set-up & Governance Competence Strategy Analysis of Needs & Maturity Level Value Estimation Risk Identification From Template to Bespoke Inventory Program/Project Integration To-Be Analysis Stakeholder Training Need Analysis Design Business Vision Detailed Business Case Risk Evaluation Identify Improvements/ add Attributes Program/Project Scope Gap Analysis Change Agent Network As-Is Analysis Design Business Model Agree Ownership for Realization Define Risk Response Plan Map Selected Processes Program/Project Time & Cost IT Roadmap Plan Communication Gap Analysis Integrated Transformation Plan Plan Benefit Realization Execute Risk Mitigation Plan Plan Process Implementation Program Quality Solution Architecture Design Performance Project Team Curriculum Development Business Case Execute Benefit Realization Risk Monitoring and Reporting Implement Processes Program Human Resource Mgmt IT Deployment Plan Performance - Business Training Preparation Organizational Model Review and Evaluate Results Risk Review Evaluate Processes Program Procurement IT Operations & Service Optimization Change Readiness Assessment Training Risk analysis Establish Potentials for Further Benefits Risk Improvement Establish CIP Program Reporting IT Lifecycle Change Monitoring Evaluation & Improvement 2013 SAP AG or an SAP affiliate company. All rights reserved. 22

Heat Map: Pharmastars Global HR System Failure expensive investment which was not justified or completed Meta A functional initiative to reduce systems costs but no benefits to key stakeholders abandoned before implementation. Direction Enablement Strategy Value Risk Processes Program/Project IT Transformation Organizational Change Competence & Training As-Is Data Collection Baseline Analysis 360 Strategic Risk Assessment Determine Scope of Analysis Program Planning and Governance Business and IT Capability Assessment Set-up & Governance Competence Strategy Analysis of Needs & Maturity Level Value Estimation Risk Identification From Template to Bespoke Inventory Program/Project Integration To-Be Analysis Stakeholder Training Need Analysis Design Business Vision Detailed Business Case Risk Evaluation Identify Improvements/ add Attributes Program/Project Scope Gap Analysis Change Agent Network As-Is Analysis Design Business Model Agree Ownership for Realization Define Risk Response Plan Map Selected Processes Program/Project Time & Cost IT Roadmap Plan Communication Gap Analysis Integrated Transformation Plan Plan Benefit Realization Execute Risk Mitigation Plan Plan Process Implementation Program Quality Solution Architecture Design Performance Project Team Curriculum Development Business Case Execute Benefit Realization Risk Monitoring and Reporting Implement Processes Program Human Resource Mgmt IT Deployment Plan Performance - Business Training Preparation Organizational Model Review and Evaluate Results Risk Review Evaluate Processes Program Procurement IT Operations & Service Optimization Change Readiness Assessment Training Risk analysis Establish Potentials for Further Benefits Risk Improvement Establish CIP Program Reporting IT Lifecycle Change Monitoring Evaluation & Improvement 2013 SAP AG or an SAP affiliate company. All rights reserved. 23

Heat Map: Automotive Standardized Manufacturing Processes and Systems Failure: project abandoned after two pilot implementations failed Meta Completely predictable failure: no real business case, stakeholder engagement or transformation capability Direction Enablement Strategy Value Risk Processes Program/Project IT Transformation Organizational Change Competence & Training As-Is Data Collection Baseline Analysis 360 Strategic Risk Assessment Determine Scope of Analysis Program Planning and Governance Business and IT Capability Assessment Set-up & Governance Competence Strategy Analysis of Needs & Maturity Level Value Estimation Risk Identification From Template to Bespoke Inventory Program/Project Integration To-Be Analysis Stakeholder Training Need Analysis Design Business Vision Detailed Business Case Risk Evaluation Identify Improvements/ add Attributes Program/Project Scope Gap Analysis Change Agent Network As-Is Analysis Design Business Model Agree Ownership for Realization Define Risk Response Plan Map Selected Processes Program/Project Time & Cost IT Roadmap Plan Communication Gap Analysis Integrated Transformation Plan Plan Benefit Realization Execute Risk Mitigation Plan Plan Process Implementation Program Quality Solution Architecture Design Performance Project Team Curriculum Development Business Case Execute Benefit Realization Risk Monitoring and Reporting Implement Processes Program Human Resource Mgmt IT Deployment Plan Performance - Business Training Preparation Organizational Model Review and Evaluate Results Risk Review Evaluate Processes Program Procurement IT Operations & Service Optimization Change Readiness Assessment Training Risk analysis Establish Potentials for Further Benefits Risk Improvement Establish CIP Program Reporting IT Lifecycle Change Monitoring Evaluation & Improvement 2013 SAP AG or an SAP affiliate company. All rights reserved. 24

Table of contents 1. How to use BTM² to become a Digital Enterprise 2. Business Transformation Methodology (BTM²) 3. BTM² in practice: Heat maps 4. How to use BTM² to become a Digital Enterprise

Transformational concerns Why will such a program be successful when all others failed? How will this impact me and can my organization digest the changes? How can I influence the project and avoid being overtaken or overruled? What are the implications if it goes wrong? Will others force their way of working on me and will I be the one having to make all the changes? Will we sacrifice our flexibility by standardizing and lose business as a consequence? Will we lose functionality if we change to a new platform? What are the business benefits vs. what are the risks; is it worth it? What is the scope; will my local products and specialties be catered for? How many (of my) resources will be tied up in the project and what other things will we then not be able to do as a consequence How are we going to finance it? Do we have management support of all departments? Such issues are addressed by the BTM 2 -Framework through a holistic approach 2013 SAP AG or an SAP affiliate company. All rights reserved. 26

9 key learnings along the BTM2 framework 1 Business Transformation 9 Meta Projects need a chief politician not a technical delivery director 2 8 3 7 Strategy If the strategy is wrong how can the transformation be successful 4 5 6 Value is the most significant single factor explaining success or failure Risk size doesn`t matter length does Process Good documentation is not enough only the change counts IT Transformation Agile offers potential for schedule performance Change Win the hearts, the heads and the guts of your people Training and Competence Amateur skills can`t win in the champions league Program Informal roles play a key role in transformation programs 2013 SAP AG or an SAP affiliate company. All rights reserved. 27

BTM² - Meta Transformation Projects need a chief politician not a technical delivery director 1 1 Envision Develop and shape a transformation strategy that fits to your organization Transformation Indicators: Drivers, Visioning and Positioning, Value Chain, Competitive Advantage, Ecosystem, Technology and Risks 2 Manage transformation holistically and achieve expected benefits Envision: Make a case of change and sense of urgency Engage: Empower people and balance stakeholder interests Transform: Change behavior, processes, technology, culture, values, Optimize: Internalize, Institutionalize and Optimize transformation, create Stability 3 Be a role model for successful transformational Leadership Leadership criteria: Charism, Confidence, Respect and Loyality, Expressive praise, Inspiration Making transformational leadership part of the organizational DNA 2013 SAP AG or an SAP affiliate company. All rights reserved. 28

2 BTM² - Strategy Portfolio of strategic options Design Transformation Strategy: 4 strategic options Consolidation & Focus: Focus on core competencies/business, Reduction of overcapacities Strategic redirection Expand core business, transfer and development Overcome stakeholder crisis Increase readiness through sensitization of stakeholders Ongoing observation Risks and opportunities low Transformation readiness high 2013 SAP AG or an SAP affiliate company. All rights reserved. 29

BTM² - Benefit A key challenge to projects is Benefits 3 Risk profile Cost risk Schedule risk Benefits risk Black Swan risk Benefits not tracked 56% +36% +119% n/a 41% Benefits tracked 44% +6% +51% 22% 14% Analysis looks at organizations that require monetized benefits to green-light a project The data shows that only 44% of these projects quantify benefits Results show that tracking benefits improves risks, despite a 22% shortfall on average n = 131, projects from organisations that track benefits 2013 SAP AG or an SAP affiliate company. All rights reserved. 30

4 BTM² - Risk Average cost risk decreases slightly with project size (Budzier 2013) Black Swan limits No correlation between project budget and project size (r=-0.001, p=0.93) 2013 SAP AG or an SAP affiliate company. All rights reserved. 31

4 BTM² - Risk Project duration increases cost risk (Budzier 2013) Average The longer the project the higher the risk of Cost Black Swans After 3 years rates are significant higher than average and rise exponentially 2013 SAP AG or an SAP affiliate company. All rights reserved. 32

Prozess Q-Planung PEP-Gesamtfahrzeug Produktqualität Produktion prüfen Q-Lenkung PEP Q-Lenkung KKP Prozess Schwachstellen Ansatzpunkte Q-Planung PEP-Gesamtfahrzeug kein systematischer Prüfplanungsprozess Optimierung Prüfplanungsprozess Lückenhaftes Prüfnetz Fabrik/ Lieferant (Systematik und Verantwortlichkeiten) mangelnde Q-Planung von Systemanforderungen (nicht Toleranzketten, sondern Prüfung von Systemen) Prozess Schwachstellen Fehlende Ableitung von Serienprüfmerkmalen Ansatzpunkte aus Team Produktanforderungen (Bauteilebene) Unklare Strukturen P, reaktive Planung Q-Planung PEP-Gesamtfahrzeug kein systematischer Prüfplanungsprozess Optimierung Prüfplanungsprozess 1 Lückenhaftes Prüfnetz Fabrik/ Lieferant (Systematik und Verantwortlichkeiten) mangelnde Q-Planung von Systemanforderungen Produktqualität Produktion prüfen Prüf-/ Fertigungsplanung entkoppelt Optimierung Prüfplanungsprozess (nicht Toleranzketten, sondern Prüfung von Unsystematische Ableitung Prüfplanung (Systematik und Verantwortlichkeiten) Systemen) Keine durchgängige CAQ Nutzung Fehlende Ableitung von Serienprüfmerkmalen aus Kein ganzheitliche Prüfplanung, Mehrarbeit Produktanforderungen (Bauteilebene) Unklare Strukturen P, reaktive Planung Q-Lenkung PEP Ressortübergreifende Q-Lenkung (GQx) ohne Reorganisation ressortübergreifende Q- Umsetzungsautorität Lenkung (Kompetenzen, Verantwortung) Unklare Zuständigkeiten in Baureihe für Produktqualität Produktion prüfen Prüf-/ Fertigungsplanung entkoppelt Optimierung Prüfplanungsprozess 1 Unsystematische Ableitung Prüfplanung Erreichung Q-Ziele (Systematik und Verantwortlichkeiten) Keine durchgängige CAQ Nutzung keine systematische Reifegradlenkung in P, F, V Schwachstellen Ansatzpunkte Kein ganzheitliche Prüfplanung, Mehrarbeit Unklare Verantwortung für Team Sicherstellung Q-Ziele kein systematischer Prüfplanungsprozess Q-Lenkung PEP Q-Lenkung Ressortübergreifende KKP Optimierung Q-Lenkung Prüfplanungsprozess (GQx) keine ohne ressortübergreifende 1 Reorganisation Q-Lenkung, ressortübergreifende Q- Reorganisation 2 ressortübergreifende Q- Lückenhaftes Prüfnetz Fabrik/ Lieferant Umsetzungsautorität (Systematik und Verantwortlichkeiten) methodische Konsistenz Lenkung nur (Kompetenzen, teilweise Verantwortung) Lenkung (Kompetenzen, Verantwortung) mangelnde Q-Planung von Systemanforderungen Unklare Zuständigkeiten in Baureihe für QLP P-intern ohne Weisungsbefugnis, unklare (nicht Toleranzketten, sondern Prüfung von Erreichung Q-Ziele Schnittstelle LK Ebene 1 und 2 Systemen) keine systematische Reifegradlenkung in P, F, V Fehlende Ableitung von Serienprüfmerkmalen aus Unklare Verantwortung für Sicherstellung Q-Ziele Produktanforderungen (Bauteilebene) Unklare Strukturen P, reaktive Planung Q-Lenkung KKP keine ressortübergreifende Q-Lenkung, Reorganisation ressortübergreifende Q- 2 methodische Konsistenz nur teilweise Lenkung (Kompetenzen, Verantwortung) Prüf-/ Fertigungsplanung entkoppelt QLP P-intern ohne Optimierung Weisungsbefugnis, Prüfplanungsprozess unklare 1 Unsystematische Ableitung Prüfplanung Schnittstelle LK Ebene (Systematik 1 und 2 und Verantwortlichkeiten) Keine durchgängige CAQ Nutzung Kein ganzheitliche Prüfplanung, Mehrarbeit Ressortübergreifende Q-Lenkung (GQx) ohne Umsetzungsautorität Unklare Zuständigkeiten in Baureihe für Erreichung Q-Ziele keine systematische Reifegradlenkung in P, F, V Unklare Verantwortung für Sicherstellung Q-Ziele keine ressortübergreifende Q-Lenkung, methodische Konsistenz nur teilweise QLP P-intern ohne Weisungsbefugnis, unklare Schnittstelle LK Ebene 1 und 2 Reorganisation ressortübergreifende Q- Lenkung (Kompetenzen, Verantwortung) Reorganisation ressortübergreifende Q- Lenkung (Kompetenzen, Verantwortung) 2 2 Team 1 1 2 2 5 BTM² - Process Linking To-Be processes, organizational change and benefit management is crucial Resolution concept Cluster process weaknesses based on similarities High level description of improvement concepts each deficiency cluster Consider ideas from Greenfield approach Consider benchmarking analysis (internal, external) Evaluate possible Solution variants Definition of To-Be processes Develop high level process landscape based on Solution concepts Elements of a Greenfield approach have to be detailed top-down As-Is processes without weaknesses can be directly transferred into To-Be processes Benchmarking processes can be adapted and directly transferred Define To-Be processes without identified weaknesses Describe defined process parameters, document processes Execution of organizational change Completely new processes have To-Be assigned to organizational units Organizational units without remaining responsibilities can be eliminated Process owners with changed responsibilities have to be assigned to the right organizational units Free capacity can be reassigned Change implementation and benefit realization 2013 SAP AG or an SAP affiliate company. All rights reserved. 33

6 BTM² - IT Transformation Agile offers potential for better schedule performance (Budzier 2013) Cost risk Schedule risk Benefit risk Black swan risk Big bang + 5 % + 56 % + 15 % 2 % Few releases + 5 % + 57 % + 15 % 7 % Multiple releases + 25 % + 21 % + 26 % 17 % Fully agile + 6 % + 20 % + 46 % 5 % N = 197 projects 2013 SAP AG or an SAP affiliate company. All rights reserved. 34

Sense of belonging BTM² - Change Win the hearts, the heads and the guts of the people 7 Conditions for internalization Process of internalization Communication principles Intrinsic basic needs Appreciation Autonomy Empathy Openness Competence need Sense of belonging I do it because I have to Autonomy I do it because I think its right I do it to avoid twinges of conscience I do it because I like to do it this way Processoriented Feedback Culture Resultoriented 2013 SAP AG or an SAP affiliate company. All rights reserved. 35

Job-Family 7 BTM² - Skill and Training Amateur skills can`t win in the Champions League C-Level Department Head Expert Assistent Business Expertise Methods Leadership Changemanagement Competencies 2013 SAP AG or an SAP affiliate company. All rights reserved. 36

BTM² - Program Informal roles play a key role in transformation programs 9 Core Questions Layers Formal Roles Informal Roles Executive Steering Committee Power promoter Relationship promoter Functional promoter Why? What? Strategy Steering Committee Program Business Transformation Manager Program Manager Power promoter Relationship promoter Functional promoter How? Project Project Manager Power promoter Relationship promoter Functional promoter 2013 SAP AG or an SAP affiliate company. All rights reserved. 37

Handbooks of Business Transformation Handbooks developed by the Business Transformation Academy Provide a '360-degree' view of what business transformation means Is a joint work of 33 Thought Leaders (Academics, Practitioners, Consultants) Describe BTM² - an integrative approach to business transformation Present different disciplines and new insights from case studies https://www.bta-online.com/knowledge/handbook/ 2013 SAP AG or an SAP affiliate company. All rights reserved. 38

Knowledge Sharing 360 - The Business Transformation Journal Publication: Worldwide first and only ejournal dedicated to Business Transformation 4 times a year Published as a free e-flip magazine on the Internet Target audience: Business practitioners (top managers, project leaders) Academics with BTM research and education interest Content: Drivers and Sustainability Methods and Research Case Studies BTA Community Pages www.360-bt.com 2013 SAP AG or an SAP affiliate company. All rights reserved. 39

More than 150 certified consultants and customers Master Training: Global Business Transformation Manager Objective The training aims to improve the leadership, methodological, and analytical skills of the participants necessary to act as a Business Transformation Manager in an international environment Global Business Transformation Manager acts as a: DESIGNER Target audience Program leads and key contributors in large transformation initiatives Strategic Partner The Master Training will take place in Potsdam near to Berlin in cooperation with Hasso-Plattner-Institute ADVISOR LEADER Timeline Oct. 29 Nov. 09, 2012 2013 SAP AG or an SAP affiliate company. All rights reserved. 40

Thank you very much for listening Professor Dr. Axel Uhl Head BTA SAP Business Transformation Services a.uhl@sap.com