3 keys to architecting for change
DESCRIPTION
Driving change is not easy. It is estimated that upwards of 70% of large transformation initiatives fail even though they are often critically important to a company’s strategy.TRANSCRIPT
BUSINESS PROCESS MANAGEMENT
3 Keys to Architecting for Change
Copyright © Open Text Corporation. All rights reserved.
December 14, 2011
Sandra Moran Sr. Director, Product Marketing
Mark DiGirolamo Director, Product Management
BUSINESS PROCESS MANAGEMENT
About OpenText Publically Traded: NASDAQ (OTEX), TSX (OTC.CN)
Headquarters: Waterloo, Canada
Revenue 2011 FYTD: US$1.033 billion
Customers: 46,000+ in 170 countries
Employees: 4,400 and growing
Strategic Alliances: SAP, Microsoft, Oracle
BUSINESS PROCESS MANAGEMENT
Recognized by our industry
Enterprise Architecture Management Suite
Forrester Wave Q211
Business Process
Analysis
Forrester Wave Q109
Business Process Management
Suites Forrester Wave Q310
Business Process
Management Suites
Magic Quadrant Q410
Dynamic Case
Management
Forrester Wave Q410
Enterprise Content
Management Suites
Magic Quadrant Q410
Enterprise Architecture Magic Quadrant Q411
Business Process Analysis
Magic Quadrant Q411
BUSINESS PROCESS MANAGEMENT
Government Finance & Insurance Pharma & Healthcare Legal & Business Services
Oil / Gas / Utilities Manufacturing Retail & Distribution Telco & Media
BUSINESS PROCESS MANAGEMENT
"Change is inevitable.
Progress is optional"
~ Anonymous
BUSINESS PROCESS MANAGEMENT
Few companies can maintain innovation
Rank Company Last Year’s
Ranking
1 Apple: For dominating the business landscape, in 101 ways 3
2 Twitter: For five years of explosive growth that have redefined communication 50
3 Facebook: For 600 million users, despite Hollywood 1
4 Nissan: For creating the Leaf, the first mass- market all- electric car
5 Groupon: For reinvigorating retail -- and turning down $6 billion.
6 Google: For instantly upgrading the search experience 4
7 Dawning Information Industry: For building the world's fastest supercomputer
8 Netflix: For streaming itself into a $9 billion powerhouse (and crushing Blockbuster)
9 Zynga: For being the $500 million -alpha dog of social gaming
10 Epocrates: For giving doctors and nurses instant drug reference
BUSINESS PROCESS MANAGEMENT
Disappearing Brands?
Source: 24/7 Wall Street
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IT Priorities
Source: Global Survey – October 2011
BUSINESS PROCESS MANAGEMENT
IT Investment Focus Shifting
BUSINESS PROCESS MANAGEMENT
Leveraging New Platforms
Source: Global Survey – October 2011
BUSINESS PROCESS MANAGEMENT
You’re doing it today
… the only question is how effectively?
BUSINESS PROCESS MANAGEMENT
Organizations use Various Practices and
Methodologies that Compete
Strategic Planning Business
Architecture Enterprise
Architecture Process Design
Content Lifecycle
Line Of
Business
Line Of
Business
Corporate
Sales
Technology
Operations
Project Z -
Method A
Project V - Method A
Project R – Method D
Project X – Method B
Project K – No Method
Project Y- Method C
Project W - Method C
Project J -
Method C
BUSINESS PROCESS MANAGEMENT
Organizations That Are Aligned Change Faster
Strategic
Planning
Operating Model Method A
Information Modeling Method A
Measurement Method A
Strategic Planning Business
Architecture Enterprise
Architecture Process Design
Content Lifecycle
Line Of
Business
Line Of
Business
Corporate
Sales
Technology
Operations
BUSINESS PROCESS MANAGEMENT
The Cost of Shortcutting the Strategy
Strong emphasis on strategy and program management
= significantly lower failure rates…
See 10% investment vs. 3% above. Source: Doculabs White Paper:
BUSINESS PROCESS MANAGEMENT
1. Adopt a standard methodology
BUSINESS PROCESS MANAGEMENT
What is a Methodology
A formal, written comprehensive list of
organized tasks with supporting
documentation on how the tasks should be
performed, the data that the team should
look for, and the identification of the
deliverables from tasks.
BUSINESS PROCESS MANAGEMENT
A Great Methodology Should
• Written by experts Too few resources know how to consistently make project succeed
• Addresses broadest scope Allows project team to pick tasks
Minimal overhead
• Explains “How To” What and how to do it
• Easy to Use Brings people to same page, same understanding
Evolves as teams become more experienced
• Addresses Sponsorship Ongoing commitment to make methodology work
Reflects corporate culture
BUSINESS PROCESS MANAGEMENT
Developing an Integrated Operations
Road Map and drive globally
consistent, industry standard, scalable
processes across Cisco in support of
business expansion and transformation
initiatives.
BUSINESS PROCESS MANAGEMENT
1. Adopt a standard methodology
2. Leverage the right initiative
BUSINESS PROCESS MANAGEMENT
Rank Potential Initiatives
Identify your risk appetite Is this project linked to strategic initiatives
Business Value Determination of applicable measureable metrics
Cost Savings (Time savings, headcount reductions, etc)
Reduce Cycle Time (i.e. change approvals reduced by 10 days)
Quality Improvements (i.e. 85% decrease in defect rates)
Establish acceptable ROI criteria
Project Scope and impact are well understood Business problem is understood
Organizations impacted are known
BUSINESS PROCESS MANAGEMENT
Sample Ranking of Change Initiatives
Complexity
Business Value Low
High
High
Project Z
Project V
Project R
Project X
Project K
Project Y
Project W
Project J
High Risk/High Reward
Low Risk
BUSINESS PROCESS MANAGEMENT
£1 billion change programme
targeted to improve revenue
by £500m and reduce costs by
£500m
BUSINESS PROCESS MANAGEMENT
1. Adopt a standard methodology
2. Leverage the right initiative
3. Communicate to drive alignment
BUSINESS PROCESS MANAGEMENT
Less than 5% of employees understood
their company’s business strategy
Under 20% of companies were able to
execute their business strategies
successfully
Source: Robert Kaplan and David Norton
BUSINESS PROCESS MANAGEMENT
Alignment Strategy
Enterprise Context
• Why – actionable business strategy
Business Context
• What we do to achieve desired business outcome
Operational Context
• How we do it – people, processes, technologies
Implementation Context
• With what – projects, tasks, activities that deliver outcomes
BUSINESS PROCESS MANAGEMENT
Communicate to Business Outcomes
Business
Impact
Business
Strategy
Impact Principle Affected
Business
Areas
Performance
Metrics
Grow Increase sales of
multiple products by
15%
Create sales
analytics
dashboards to
present product
purchasing
suggestions
based on
historical buying
patterns.
Sales will
leverage
existing data on
multiple product
buying
tendencies to
recommend
additional
products
Sales, Marketing,
Customer
Relationship
Management
Multiple product sales
by customer
Run Reduce Risk and
impact of regulatory
requirements
Develop
comprehensive
risk and regulatory
management
strategy
Financial and
regulatory rules
and processes
must be
consistent
across all lines
of business
Risk Management,
production,
accounting,
financial reporting
Compliance levels,
implementation time,
number of audit
issues
Transform Increase Customer
Satisfaction and
decrease service
cost
Create a customer
environment that
enables easier
access to account
information and
allows them to
control service
Customer facing
applications
must support
customer quality
program
Customer Service,
Sales, Account
Managers
Decreased customer
support costs,
increased satisfaction
ratings,
Increased multiple
product sales
BUSINESS PROCESS MANAGEMENT
Start with Desired State…Mind Gaps
Organization Required Skills Impact Performance Metrics Gap
Sales High High Revenue Growth
New sales dashboard
Purchase history data
Customer Service High High Customer Satisfaction
Support Costs
Customer service
application updates
Marketing Medium Low Revenue Growth
BUSINESS PROCESS MANAGEMENT
Coordination Across Multiple Organizations
Requires additional
communication &
coordination
Identify conflicting
strategies, incentives &
measures
Examine redundancy
Reduce complexity
Identify gaps within your
current business practices
BUSINESS PROCESS MANAGEMENT
Changes the Way People Work - Everyday
BUSINESS PROCESS MANAGEMENT
Analyzed and consolidated over
1500 disparate customer service
processes across 132 countries
down to 100 global best practices for improved consumer support.
BUSINESS PROCESS MANAGEMENT
Tools to Architect for Change
Demonstration
BUSINESS PROCESS MANAGEMENT
Thank you
For more information visit us at:
www.opentext.bpm.com
32
[email protected] 415-963-0812
Contact Information
[email protected] 248-281-8956 Marketing
Product