Success Factors And New Perspectives Of BPM To Enable Scale

Prof. Dr. Ayelt Komus Struktur Technologie Mensch Success Factors And New Perspectives Of BPM To Enable Scale Process Summit Q4, 2012 Leading Processes to Enable Scale October, 23 rd, Wiesloch - Germany Prof. Dr. Ayelt Komus BPM Laboratory University of Applied Sciences Koblenz www.komus.de komus@hs-koblenz.de www.twitter.com/ayeltkomus www.komus.de

Telegraphy http://commons.wikimedia.org/wiki/file:nokia_evolucion_tama%c3%b1o.jpg 2

Telex http://commons.wikimedia.org/wiki/file:fornebu_telex_central.jpg 3

Fax Machine http://commons.wikimedia.org/wiki/file:fax-amarys.jpg 4

Mobile Phones (Nokia) http://commons.wikimedia.org/wiki/file:nokia_evolucion_tama%c3%b1o.jpg 5

Long-Term Technology pio3 - Fotolia.com 6

Long-Term Asset: Business Process Management Top Management Department A Department B Department C Department D Product 1 Product 2 Product 3 7

Long-Term Asset: Business Process Management Top Management Department A You can not not manage processes! Department B Department C Department D Product 1 Good BPM is a sustainable business advantage! Product 2 Product 3 8

BPM And Business-Success Go Hand-In-Hand 82% know or believe their EBIT-margin is above industry average How successful was your company compared to other companies in the industry? 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 0% 0% 0% 24% 35% 41% Source: BPM Best Practice-Study Prof. Komus FH Koblenz 9

BPM-Survey: Managed BPM And Profit Margin 25,00% Higher profit margin with managed BPM (Median 6-8% vs. 4-6%) 20,00% Percentage of Companies 15,00% 10,00% 5,00% "Gezieltes Managed BPM"' "Kein No managed gezieltes BPM" BPM-Activities Median 0,00% bis 2% 2-4% 4-6% 6-8% 8-10% 10-20% 20-30% 30-40% 40-50% über 50% Profit Margin Source: BPM-Survey, Prof. Komus FH Koblenz 10

BPM + 6 Sigma: BPM And Profit Margin Higher Profit Margins For BPM-Companies Source BPM + Six Sigma study, FH Koblenz 11

Company s Success How successful do you consider your company to be looking back at the last 3 years? deutlich erfolgreicher als andere Unternehmen much more successful der Branche 7% erfolgreicher als andere Unternehmer more successful der Branche 38% ähnlich erfolgreich about wie as andere successful Unternehmen as other der Branche companies in industry 44% weniger erfolgreich als andere Unternehmen der Branche less successful 6% deutlich weniger erfolgreich als andere Unternehmen significantly der less Branche successful unbekannt uncertain - keine no Meinung opinion 1% 2% n=81 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 89% of BPM-study-participants are at least as successful as other companies in same industry Quelle: Studie Qualität im BPM www.q-in-bpm.info 12

BPM-Laboratory www. Status-Quo- Chemie- Pharma.de www. Status- Quo- Agile.de BPM Laboratory www. BPM-ERP- Update.de Praxisforum BPM&ERP** BPM- Survey BPM in SME and large enterprise www. BPM6Sigma. de Combination of BPM with other methods (esp. 6Sigma) BPM- Best Practice Expert Interviews with BPM- Best Practice Companies www. Q-in-BPM.info Quality. in BPM www. IT-Radar.info Today s and future topics In BPM and ERP BPM-Umfrage (Studie) BPM-Check (Interactive Maturity Model) Empirical Studies Practical Experience BPM-Expertise BPM: Business Process Management ** www.bpmerp.de *** Worskhops/Trainings 13

Books What are the success factors of Wikipedia and other to learn from in the field of BPM? How to use Social Media in the organization? What does the BPM of BPM-Best- Practice-Companies look like? BPM-Success Factors of Deutsche Bank, Miles & More, Bayer, Generali and many other Other Publiactions: www.komus.de/publikation 14

BPM Best Practice-Study Participants: Bayer HealthCare AG, Cosmos Direkt, Deutsche Bank AG, DZ Bank AG, E.ON Energie AG, EDEKA Minden-HannoverIT-/ logistic service GmbH, EnBW Energie Baden-Württemberg AG, Finanz Informatik Technologie Service GmbH & Co. KG, Generali Deutschland Holding AG, Lufthansa Miles & More, Nordenia Deutschland Gronau GmbH, Paul Hartmann AG, Siemens AG, Siemens Healthcare, VIS Informatik GmbH (Generali Wien), Volkswagen AG, Watt Deutschland GmbH Distribution by size* 63% very large-scale enterprise (7 DAX-Companies) 25% large-scale enterprise (GU), 13% midsize companies (MU) * Segmentation based on number of employees and turnover; difference to 100% due to rounding errors 15

Success Factors And New Perspectives To Enable Scale Success Factors New Perspectives To Enable Scale 16

4 Areas Of Successful BPM-Systems People Strategy Structure Technology 17

Areas Of Successful BPM-Systems People Strategy Structure Technology 18

BPM-Strategy-Alignment 82% BPM Best Practice-Companies align their BPM to Business Unit- or Company-Strategy Only 18% systematic documented process 65% implicit process Best Practice BPM Leaders have a very good understanding of business needs and goals. Source: BPM Best Practice-Study Prof. Komus FH Koblenz Quelle Bild: http://commons.wikimedia.org/wiki/file:nonsynchronousgearboxsf.jpg 19

Immediate Value- In Short Term! olly - Fotolia.com olly - Fotolia.com 20

Areas Of Successful BPM-Systems People Strategy Structure Technology 21

Linking IT-Systems And Models only 41% realized links between business models and IT-models only 25% realized links between IT-systems in production and business models BUT: 71%: development of IT-applications based on process-oriented methods connection between IT-systems and models is surprisingly poor Round-Trip is not very common yet. Exception: BPMS But more often than not BPMS-round-trips are not connected to true business modelling-world Gartner s Businness Process Improvement Cycle Source: BPM Best Practice-Study Prof. Komus FH Koblenz 22

From Business To Technical Perspective Of Modelling First workshop Before technical implementation TIME Diagrams: courtesy of Siemens 23

The Beauty Of Models Anna Ayelt Khomulo Komus - Fotolia.com www.komus.de 24

All The Models Beauty Are Of Models Wrong Essentially, all models are wrong, but some are useful. Long-term-thinking is crucial! Who will maintain the process-model? http://en.wikipedia.org/wiki/file:georgeepbox.jpg, abg. 16.4.2012 George E. P. Box: Anna Ayelt Khomulo Komus - Fotolia.com www.komus.de 25

Areas Of Successful BPM-Systems People Strategy Structure Technology 26

Process Managers 60% 50% 59% PMs are widespread (82%) 40% 30% 20% 12% 12% 18% PMs with full line management competencies concerning employees in relevant processes only 12% 10% 0% 0% Pragmatic approach of combining process approach with existing managerial structures Source: BPM Best Practice-Study Prof. Komus FH Koblenz 27

BPM Center Of Excellence BPM Center of Excellence in almost all Best Practice-Companies No line management structure between Center of Excellence and process managers Typical Tasks Definition of standards Centralized services Quality Management and Quality Assurance Responsible for Technical BPM-Infrastructure Source: BPM Best Practice-Study Prof. Komus HS Koblenz Quelle Bild: ttp://commons.wikimedia.org/wiki/file:heliocentric_solar_system.png 28

The Big Divide: Technical And Business BPM eurobanks - Fotolia.com 29

Areas Of Successful BPM-Systems People Strategy Structure Technology 30

It s The People, Stupid! 31

Defined Standards And Reality 32

Account Team informs Manager of major project SDH PM not required (End) Route not investigated Validation job generated on CMC queue Links Issuer Enter Order & JC Order Validation Inform Sales New quote request from PM New quote request from customer Missing information passed to NSD (End) Route not investigated Manager informed of major project from other Customer request (major project) NJRA closed Links Issuer Enters Order & NTE Task Missing information received (JC) Links Issuer chase missing info & JC Order Validation Missing information request (JC) Links chase missing info & order validation Issuer chases missing info PM reports Project Status SE Capture Order CRF completed and Links SE Capture Order & Issuer Enter Order Issuer Enter Order Links JC Order Validation & NTE allocation 601 task to Wideband Pass Missing information planner to Issuer Links Issuer Enter Order & Search for Y Code JC order NJRA closed Links refer costing to customer & cancel order Decide no new orders required Dead end Response filed Dead end Missing information request (Issuer) Links Issuer Enter Order & SE Resolves Links Issuer chase missing info & WBP Site survey &WI Relevant NSD informed of new proj order (Link) Links Queue Manager selects NTE & Route/Assign Glasgow Links WBP Site Survey & Issuer chase missing Info Order Cancel order End Links SE Resolves & Issuer Enters Order Re-Issue 601 Task towbp Links JC Order Validation & Search for Y Code Input from Account Team Receive customer plans PM Plans Customer Requirements Requirement generated as result of capacity Links PM Plans Customer Requirements & SE Capture Order Links Search for Y Code & Q Mgr selects NTE Task A29/O532/O530 Links Issuer chase missing info & WBP Site Survey Missing information not available (WBP) SE Resolves Missing info received Link to internal/ external work groups - not modelled Missing information request (WBP) New job in queue Y Code Search Slough/ London Links Search for Y Code & NTE Task Info sent to internal/external workpacks Links WBP Site Survey & SE Refer Costing to Customer New Job in queue Ancillary cost info to SE SE refer Costing to Customer Customer confirm information to Wideband Links SE refer costings to customer & WBP Site Survey Link not Modelled/investigated WBP Site Survey Route, Assign & config 2Mbit Circuits Other output tbc Scheme referred to NSD NTE Tasks (129/532) London/Glasgow Links WBP Site Survey & Issue RF's & JC Respond to CREP Task called to issuer Issuer chooses to ignore so not modelled Input not Modelled Incoming call from field engineer R&A task com'd Link to COSMOSS glue and Config circuit 154 Task live (Link) JC Respond to CREP Decide to place order with tactical planner Links PM plans Customer Reqs & Tactical Planning 154 at COM Ready to CREP Links JC responds to CREP & Issue RF's Glasgow Scheme installed & commisioned Job delayed Links WBP Site Survey & JC Analyse Delay Links NSD Route/Assign & JC Respond to CREP Links Supervise External /Contractor & Integrate Schemes Integrate Schemes CONF Live Links Integrate Schemes & Configure Circuit/Resolve Problems Configure Circuit Resolve Problems End of Process Feed into COSMOSS statistics - Dead end Links NTE Tasks & WBP Site Survey Links WBP Site Survey & NSD Job Selection & Clean 010/O534 live (Link) Links NTE Tasks (No Y Code) & JC Analyse Delay Order in Job Controller's Queue (Link) CREP complete Links Issue RF Glasgow & Allocate COW CDD amended WNEX live after JC amend CDD Issue RFs Glasgow/ London 198/O912 complete Allocate CoW London / Sheffield Ready for installation Links Allocate COW& COWsupervise external works Supervise Equipment not delivered Not Modelled at Present - Non Fluid Process Scheme referred to CSP Integrate scheme and Tactical planning eepcs WNEX task is triggered by COSMOSS, once all other tasks have been completed CDD can't NSD Q Manager chase missing info/clean data Glasgow Job assigned to NSD (Link) Links NSD Job Selection/Clean & NSD Route /Assign RF prepared (Link) Feed into COSMOSS statistics - dead end Links Issue RF's & Route & Assign NSD Route INJC in JCs queue (Link) Links NSD Job selection/clean & JC Analyse delay Links WBP Site Survey & Issue RF's Glasgow SDH2C form sent to NSD (Link) Capacity problem raised Links Route/Assign & JC Analyse delay INJC in JCs queue (Link) Links Supervise External Works/Contractor & IM facilities decisions Job returned to queue man (Link) Dead end - route not investigated Dead end - route not investigated Dead end - route not investigated Dead end - route not investigated Links Route/Assign & Queue Manager Chases missing details Links JC analyse delay & WBP Progress info passed to WBP Progress info passed to NSD Progress info passed to PM Progress info passed to CSM 601 Task INAC task live Links JC analyse delay & SE responds to Customer JC Analyse Delay Dead end SE respond to Customer Progress update to SE Links SE analyse delay & JC analyse delay RF's sent for Financial authorisation Out of Scope - not Modelled Ready for installation Links Supervise Contract & COWsupervise External Works Route not investigated Delay enquiry from customer SE Analyse Delay Progress request to JC (SE) Links Supervise contract & Tactical Planning Solution Planning Links Detailed Planning & Supervise Contract Requires further Investigation Form sent from Oswestry Capacity Managment Tactical Planning RFs sent to CSP Contracts Supervise DL proact job on queue Detailed Planning Proact job complete Links to External Works carrying out DL works Requires further Investigation SDH23 received IM Facilities Decisions Not modelled Requires further Investigation IM Plan Sites for Capacity Requires further Investigation Budget As-Documented Versus As-Is Documented Real Life Slide courtesy of British Telecommunications plc 33

BPM Training Relevance of training is well understood among BPM Best Practice Companies 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 12% 29% 41% 18% Source: BPM Best Practice-Study Prof. Komus FH Koblenz 34

Culture Of Change 2 / 3 of Best Practice Companies understand change as an accepted part of their corporate culture 70% 60% 50% 65% 40% 30% 18% 18% 20% 10% 0% Source: BPM Best Practice-Study Prof. Komus FH Koblenz 35

BPM-Success Factors Know-why Training Culture Process Ownership Center of Excellence People Value-driven Loose Coupling Strategy Structure Technology Alignment with Business Value Success-Stories 36

Very Often Simple Things Make The Difference Life Expectancy 1900: ~ 45 years today: almost 80 years Healing Medicine Hygiene and Public Health 5 years 30 years Prof. Dr. med. Martin Exner, Institut für Hygiene und Öffentliche Gesundheit http://www.ihph.de/publikationen/hygiene_oeffentlgesundhei.pdf, abg. 11.6.2012 http://commons.wikimedia.org/wiki/file:operation_medizin.jpg http://upload.wikimedia.org/wikipedia/commons/1/1b/ocd_handwash.jpg 37

Success Factors And New Perspectives To Enable Scale Success Factors New Perspectives To Enable Scale 38

Success Factors And New Perspectives To Enable Scale New Perspectives Loose Coupling Social Media Agile 39

Loose Coupling Learn From Construction Industry Roller Bearing Expansion Joints http://de.wikipedia.org/wiki/datei:dehnungsfuge.jpg http://upload.wikimedia.org/wikipedia/commons/2/2e/lager_01_kmj.jpg 40

Layers Of Models Technology BPM Computation Independent Model (CIM) Platform Independent Model (PIM) Technology BPM Platform Specific Model (PSM) Based on Allweyer in Komus (Editor): BPM Best Practice, Springer-Verlag 2011 41

Layers Of Models In BPM (Technology And Business) Business Process Landscape Business BPM High Level Process Models Computation Independent Model (CIM) Platform Independent Model (PIM) Technology BPM Platform Specific Model (PSM) 42

Loose Coupling Of Models Business Process Landscape High Level Process Models Computation Independent Model (CIM) Platform Independent Model (PIM) Platform Specific Model (PSM) http://upload.wikimedia.org/wikipedia/commons/2/2e/lager_01_kmj.jpg 43

How To Put Loose Coupling Into Practice Flexible Pointers (i.e. Wikis) Social Links Culture Organisational Structure http://upload.wikimedia.org/wikipedia/commons/2/2e/lager_01_kmj.jpg Shared Process Oriented Goals (IT and PM) Avoid Overengineering and Rigid Structures * Process Manager 44

Success Factors And New Perspectives To Enable Scale New Perspectives Loose Coupling Social Media Agile 45

Availabilty Of Models And Grass-Root-Modeling 84%: Models are available for all employees and easy to read BUT: Development of models only together with specialists Process Models are not commonly used to support day-to-daywork Bottom-Up-Models stay in the desk drawer and have almost no connection to the official process world 46

Example: Open Processes Deutsche Telekom Quelle: Apeldorn, Andreas: Open Processes - Defizite des klassischen Prozessmanagements und die Wikimanagement-Erfolgsfaktoren. Prozess Management 2012, 25.5.2012 Wien BPM is NOT just producing lots of process-models! Social Media Tools and Methods is key to involve staff involved in processes 47

Success Factors And New Perspectives To Enable Scale New Perspectives Loose Coupling Social Media Agile 48

3 Things. 3 things we wish were true The customer knows what he wants The team knows how to build it Nothing will change along the way http://commons.wikimedia.org/wiki/file:change.jpg?uselang=de 3 things we have to live with The customer discovers what he wants The team discovers how to build it Many things change along the way Based on Henrik Kniberg 49

Sucessful Scrum Not Limited To IT-Development! Source: Erretkamps, Heinz; Yon, Gregory: Agile Product Development at Johnson Controls Automotive Experience A Success Story, Scrum Gathering, Barcelona Oct. 2012. http://www.scrumalliance.org/system/slides/119/original/ ClosingKeynote_HeinzErretkamps&GregoryYon_AgileMechanicalProductDevelopment.pdf?1349825029 50

56% Overall Improvement In Designing Mechanism Parts Quelle: Heinz Erretkamps und Roland Frey: Agile Produktentwicklung bei Johnson Controls Automotive Experience Eine Erfolgsgeschichte - SCRUM DAY 2012, 5. JULI 2012, ST. LEON-ROT Key Performance Indicator Self Assessment of Team-Performance 51

Success Factors And New Perspectives To Enable Scale Success Factors New Perspectives To Enable Scale 52

BPM-Success Factors Know-why Training Culture Process Ownership Center of Excellence People Value-driven Loose Coupling Strategy Structure Technology Alignment with Business Value Success-Stories 53

New Perspectives Loose Coupling Social Media Agile 54

BPMS The Linking Pin To The Long Tail Number of processes in certain period classical Business IS BPM Suites Groupware/ CSCW* Prof. Dr. Ayelt Komus FH Koblenz * CSCW Computer Supported Collaborative Work Processes in order of frequency (highest left lowest right) Idea: Scherer, Siemens AG 55

New Possibilities With More Powerful BPMS-Technology Number of processes in certain period classical Business IS BPM Systems Groupware/ CSCW* Prof. Dr. Ayelt Komus FH Koblenz * CSCW Computer Supported Collaborative Work Processes in order of frequency (highest left lowest right) 56

Automated Processes I am not in the office at the moment. Send any work to be translated source: http://news.bbc.co.uk/2/hi/uk_news/wales/7702913.stm 57

Questions? Thank You For Your Attention www.komus.de www.bpmerp.de www.it-radar.info www.bpm-erp-update.de You ll Find Many Of My Presentations on www.komus.de/vortrag 58

Save The Date Praxisforum BPM und ERP (27.11.2012, HS Koblenz) Thema: Agile Methoden in IT- und Prozessmanagement www.bpmerp.de (Nur für Anwender leider Warteliste) Praxisworkshop: Scrum und Kanban im SAP- und Prozessmanagement 21. und 30.11.2012 - www.bpm-erp-update.de Praxisworkshop: BPM-ERP-Udpate 2013: Chancen und Herausforderungen für Prozess- und SAP-Management in 2013 11.12.12 und 15.1.13 - www.bpm-erp-update.de alswart- fotolia 59