aris-enterprise bpm framework

www.ids-scheer.com

Enterprise BPM framework

IDS Scheer Nederland

Frank Luyckx, Enterprise BPM solution champ

Agenda

ARIS BPM framework


22

11

ROI BPM framework33

© IDS Scheer AG www.ids-scheer.com

An organization should be a school of fish

To survive they have to react to changes quickly


To survive they have to react to changes quickly

Gartner :

BPM is a structured approach employing methods, pol icies, metrics, management practices and software tools to measure, synchronize and continuously optimize the organization's activities a nd processes."

"BPM governance is a management practice that provides for governance of a business's process environment toward the goal of improving agility and operational performance and revenue.

Misalignment ….

• Personal agendas• Politicking• No agreed routemap

• No consistent measures

TQM

ContinuousImprovement

CustomerFocus

Productivity

Empowerment

Too manyindependent initiatives

Just in time reskilling

sales forceeffectivenesssales force

effectiveness

EDI

No Clear Leadership

Disillusioned Management


• No consistent measures • No stretch targets• Shop floor disengaged

Business

4 Driving forces within an organisation

How can I manage my business results


OrganizationProcess

How can I manage my business processes

How can I managemy organisation

How can I control my business results

4 Phases of the Process Life Cycle Management


Strategy = Company Objectives & Business strategy

Design = Functional design & Business analysis

Implement = Solution development & Deployment prepar ation

Controlling = Operational environment & Daily Mainte nance

IDS Business Process Maturity framework to reach Bu siness agility

Strategy Design Implementation Controlling

Business Transformation Management Business Communications ManagementBusiness Strategy Business Management

BPM Configuration Management BPM Support ManagementBPM Program Management BPM Design

We want a new printer in the home market segment

What are the specifications and logistical requirements ?

How should I change the distribution centers and logistical concepts?

Where can I find information of the new printer and my new responsibilities ?

BusinessManagement


BPM Change management BPM GovernanceBPM Change Program BPM Organizational Design

BPM Knowledge Management BPM Objectives ManagementBPM Financial Management BPM Quality Management

What are the objectives for the organisation ?

How should I design the new organisation?

Does the organisation accept the new organisation structure ?

How can I manage the organisational standards and responsibilities

What processes & projects do I require ?

How should the process design look like ?

How should I confige the ICT applications and processes ?

How can I daily support the ICT applications and processes ?

What is the ROI and process cost of this new printer ?

How can I improve the printers and logistical infrastructure?

Does everybody understand the printer, applications & processes ?

Does the new printer and BPM reaches the objectives ?

ProcessManagement

OrganisationManagement

ManagementControl

BPM stakeholders

BPM BPM ImplemImplemBPM DesignBPM DesignBPM StrategyBPM Strategy BPM ControlBPM ControlJurgen Jurgen SattlerSattlerCEOCEO

Frank Frank VolmerVolmer

Paul BijsterPaul BijsterBusiness DevelopmentManager

Steve Steve MCALLISTERMCALLISTERBusiness Planner

Johanna Johanna FeldmanFeldmanIT

Gunnar Gunnar OLSSONOLSSONIT System

Carl BRAUNCarl BRAUNHead of Service Center

Robert Robert THOMSONTHOMSONBusiness

BusinessManagement

Process


VolmerVolmerOperations Operations Manager

Claus Claus PettersonPettersonHRM manager

Monika Monika BAUDISCHBAUDISCHFinancial services

Peter Peter SONNTAGSONNTAGGlobal BusinessOwner

Peter Peter MAYMAYBusiness Process Analyst

IT Architect

Etienne Etienne DUCRETDUCRETKnowledgeManager

Linda Linda ROSENFELDROSENFELDOrganisational Change Manager

Marcus Marcus ANDERSENANDERSENProject Manager, Operational Excellence

Wolfgang Wolfgang BECKERBECKERHead of BPMOrganization

IT System SupportManager

BusinessArchitect

ProcessManagement


ManagementControl


Business Transformation Communications ManagementBusiness Strategy Business Management

BPM Configuration Management BPM Support ManagementBPM Program Management BPM Design

BPM project portfolio Corporate process model BPM execution platform BPM system support

Business analysis

Balanced score Card

Products & services analysis

Bus requirements mngmt

Transformation management

Continious improvements

Communication platform

Information management

BusinessManagement

Process

BPM Governance Framework with BPM projects


BPM Change management BPM GovernanceBPM Change Program BPM Organizational Design

BPM Knowledge Management BPM Objectives ManagementBPM Financial Management BPM Quality Management

BPM stakeholders objectives

HRM organisational analysis

BPM organisation design

BPM process owners

BPM change management

Authorization concept

BPM standards & methods

BPM escalation management

BPM project standards

Corporate process model

BPM architecture

BPM execution platform

Documentation & testing BPM impact analysis

Process costing analysis

BPM ROI calculation

Six sigma projects

BPM quality analysis

BPM content management

BPM training management

BPM objectives analysis

BPM SLA management

ProcessManagement


ManagementControl

A higher BPM maturity level generates benefits for the organisation

Alignment ,HarmonisationRationalisation of:

Products, Processes, Policies, ProjectsPlatforms, Procedures,


As each bird flaps its wings it creates an

uplift for the bird following. By flying in a

V formation the whole flock adds 71% of

the flying range than if each bird were to

fly alone.

Procedures, Planning, Power, Performance, Politics, …… People

BPM Maturity Levels to measure alignment (CMMI, OMG )

Integrated E2E processesand E2E process organization across the 5 BPM domains

E2E process analysisof both the E2E processes and products

Networked E2E processeswith business partners

Strategical market agilityand proactive improvements enabled by piloting innovativenew ideas and technologies

3 Standardized

4 Predictable

BPM domain integration requires discipline by the complete organization

Success depends on BPM

Build a trusted relationship with your business partners ( suppliers and customers )

5 Optimizing


Individual process flows .Few activities are described.

Individual planningmotivation, efforts and heroics

Unit process disciplineis in place to repeat processesand reduce rework.

Basic project managementto track costs, schedule and functionality.

Corporate E2E processesare standardized by an accepted methodology.

BPM Competence Centermonitors BPM projects - BPM tools - E2E process standards

and products

1 Initial

2 Managed

Success depends on employee competencies

Success depends on

management competencies

Success depends on BPM competencies

Concepts IDS BPM Maturity Model

Maturity levels describes the levels that an organization

moves through as it evolves from an immature

organization without any process discipline to a mature

organization where all processes are measured,

managed and consistently improved.

5 Maturity levels

Initial processes Managed processes Standard processe s Predictable processes Optimizing processes

BPM Tools can support an organization

to reach a higher BPM maturity level


A BPM Process area

describes a cluster of related

BPM processes within the

organization.

16 BPM

Process Area’s

BPM Maturity Index

BPM Maturity Level 2,4

2,8 2,0 2,3 2,3Business Strategy Management 2 Business Management 2 Business Transformation 4 Business Communication Management 1BPM Program Management 4 BPM Design 1 BPM Configuration Management 2 BPM Support Management 2BPM Change Program 2 BPM Organizational Design 2 BPM Change Management 1 BPM Governance 4BPM Cost Management 3 BPM Quality Management 3 BPM Knowledge Management 2 BPM Objectives Management 2

BPMBPMBPMBPM



The BPM Maturity Index determines whether the management team should start projects for:

1. The Formalisation & Management of the processes and procedures

2. The Standarisation & Alignment of the processes and procedures

3. The Optimalisation & Integration of the processes and procedures

4. The Innovation & Market Agility of the processes and procedures

BPM Cost Management 3 BPM Quality Management 3 BPM Knowledge Management 2 BPM Objectives Management 2

Experiences of more than 700 companies with BPM mat urity models (INK, EFQM)

�The average results of the use of BPM maturity concepts are :

� Growth of Sales (37-77%)

� Growth operating income (18-48%)

� Better return on sales (4,4%-8%)


� More focus on the alignment of the business strategy and the processes

� Structure for operational management reporting and annual reporting

� Governance Structure for managing BPM within organisations

Agenda

ARIS BPM framework


22

11

ROI BPM framework33


Project

Preperation

As-IsModels Detailed

Process Models(Top/down)

Blueprint RealisationRealisationFinalFinal

PreparationPreparation

ProcessScope

E2EScope

E2EModels

FunctionalUnit Test

IntegrationTests

UserAcceptance

Test

RegressionTests

Go LiveGo Live

and Supportand Support Next Roll Out

Support &

Improvements

Impactassessment

BPM in een Project

SystemDocumentation

Scope Models

SystemScope

Org.Scope

InterfaceMap

BusinessRoles

SAP Org. Model

Test

AuthorisationMatrix

Tests

Change Request Management & Updated Process Models(Project Based)

Change Request Mgnt(Governance Based)

PublishApprovedBlueprintModels

DevelopEnd User Training

End User Training

PortalConcept

Businessprofiles

training

Changemanagement

Portal / content

Communication

UserDocumentation

BPM ControllingBPM ControllingBPM ImplementationBPM ImplementationBPM DesignBPM DesignBPM StrategyBPM Strategy

BPM BPM CommunicationCommunicationManagementManagement

BPM BPM SupportSupportManagementManagement

BPM configurationBPM configurationManagement &Management &Testing Testing

Processes Processes & project& projectManagementManagement

configurable start page with optionally• a start page image• a start model with clickable buttons • main menu functions

views on database are configured in start model

view on processes(navigation via

process assignmenttree)

view on organization(navigation via

assignment tree oforganograms)

overview of documents(navigation via

structured document list)

overview of files (navigation via flat list of files)

Doe s bankmas ter a lrea dy

ex is t?

Bank m as te rdoe s NOT

e xis t

Bank mas te rex is ts

Change of ba nkm as te r re quire d?

Change of ba nkm as te r re quire d

Cha nge ofbank ma ste rNOT re quire d

De let ion of bankm as te r re quire d?

Del et ion ofbank ma ste r

re quire d

Del et ion ofbank ma ste rNOT re quire d

Ba nk cha inupdate re quire d?

Crea te bankmas te r

C ha nge bankmas te r

Dele te ba nkmas ter

Crea te Bank

Change Bank

Set Fl ag toDele te Ba nk

Reques t forupdate

approve d

SA P R/3

SA P R/3

Busi ne s sSce na rio Update

bank mas terdata

ARIS EPC ARIS Test Scenarios TestDirector

TT

Test case

Journalapproved

Save journal ascomplete

transaction

Display savedjournal

Journal savedas completetransaction

No changesnecessary

Test case22

Test case22

TT

Test case

Journalapproved


transaction



No changesnecessary

Test case22

Test case22

TT

Test case

Journalapproved


transaction



No changesnecessary

Test case22

Test case22

TT

Tes t c ase


transaction



No changesnecessary

Test case22

Test case22

TT

Tes t c ase


transaction



No changesnecessary

Test case22

Test case22

TT

Tes t c ase


transaction



No changesnecessary

Test case22

Test case22

TT

Tes t c ase


transaction



No changesnecessary

Test case22

Test case22

TT

Tes t c ase


transaction



No changesnecessary

Test case22

Test case22

TT

Tes t c ase


transaction



No changesnecessary

Test case22

Test case22

Business Process Management platform based on ARIS


ManagementManagement

OrganizationOrganizationStandardsStandards& BPO’s& BPO’s

Testing Testing

BPM KnowledgeBPM KnowledgeManagement &Management &TrainingTraining


BPM BPM GovernanceGovernanceManagementManagement

BPM Change BPM Change Management Management & & AuthorizationsAuthorizations

Sales ManagerGermany

Sales RepresentativeGermany

Sales ManagerGermany

Technical SpecialistGermany

Sales RepresentativeAmericas

EmployeeSales

Sales Manager

Sales ManagerAmericas

Technical SpecialistAmericas

Employee SalesGermany

Employee SalesAmericas

RoleRolePositionPosition

From ARISprocess modelto requ. Spec.

From portal to e-learning offers

From SAP applicationto ARIS process model

From ARIS Process modelto SAP applocation

From portal to FAQ lists

From portal to ARIS process world

From portal to requirements specification

Bank chain upda tere quire d

Ba nk cha inupdate NOT

re qui re d

Cre ate/ changeba nk data

Re ady t o informus e r of update tobank ma ste r da ta

Maintain bankchai ns f or

pa rtne r

SAP R/3

SAP R/3

JournalapprovedJournal

approvedJournal

approved

JournalapprovedJournal

approvedJournal

approved

BPM Governance Framework with BPM projects

BPM ControllingBPM ControllingBPM ImplementationBPM ImplementationBPM DesignBPM DesignBPM StrategyBPM Strategy

BPM BPM CommunicationCommunicationManagementManagement

BPM BPM SupportSupportManagementManagement

BPM programBPM programmanagementmanagement

Business & Business & Product Product ManagementManagement

BusinessBusinessStrategy & Strategy & BPM objectivesBPM objectives

Business Business Transformation Transformation ManagementManagement

BPM Testing &BPM Testing &Configuration Configuration ManagementManagement

ProcessesProcessesDesign Design ManagementManagement

Innovation & learning

Financial

Internal Business Perspective

How do we look to our stockholders?

At what must we excel?

Can we continue to improve and create value?

How do our customers see us?

Strategy

BusinessBusinessModelModel

ChangesChanges

BusinessBusinessProcessesProcessesChangesChanges

BusinessBusinessApplicationsApplications

ChangesChanges

New ServicesNew Services

New ProductsNew Products

AcquisitionAcquisition

New SalesChannelsNew SalesChannels

New MarketsNew Markets

New PartnersNew Partners

. . . . . .

New ProcessesNew Processes

NewProcess Flows

NewProcess Flows

NewDepartments

NewDepartments

New BusinessFunctions

New BusinessFunctions

New UPI‘sNew UPI‘s

NewResponsibilities

NewResponsibilities

New InformationAccess

New InformationAccess

ModificationsModifications CompositionComposition . . . . . .

IntegrationIntegrationExtensionsExtensions

StrategyStrategy

BPMBPM

ITIT

SA

P E

RP

UV

A

proj

Fase 1 Fase 2

Week / MaandCorporate Process Model level 1, 2 en 3

BPM inkoop (level 4)

Implementatie SSM en synchronisatie ARIS

Projecten adminstratie

Finance, HRM, Vastgoed

Studenten adminstratieProcess verbeteringen / Faculteit validatie (CM)

13 14 15 16 17 18 19 20 21 22

Fase 3

BP

M Opzetten BPM governance

23 24 25 26 27 28 29

Opzetten BPM conventies

Fase 4

BPMNBPMN

ARIS Repository

Event-Driven Process ChainWSDL

«interface»«wsdlPortType»

http://creditsales.soa.umg.ids.com/::CreditSalesSer vice

«wsdlOperation» +calculateCreditIncreaseProposal(in calculateCreditIncreaseProposa...«wsdlOperation» +changeCreditApplication(in changeCreditApplicationRequest: Credit...

«wsdlOperation» +checkCustomerPaymentCapacity(in checkCustomerPaymentCapa...

«reside»«reside»«reside»

«wsdlService»http://creditsales.soa.umg.ids.com/::CreditSalesSer vice

WSDL

«interface»«wsdlPortType»

http://creditsales.soa.umg.ids.com/::CreditSalesSer vice

«wsdlOperation» +calculateCreditIncreaseProposal(in calculateCreditIncreaseProposa...«wsdlOperation» +changeCreditApplication(in changeCreditApplicationRequest: Credit...

«wsdlOperation» +checkCustomerPaymentCapacity(in checkCustomerPaymentCapa...

«reside»«reside»«reside»

«wsdlService»http://creditsales.soa.umg.ids.com/::CreditSalesSer vice

BPEL

Process Execution

BPELBPEL

Process ExecutionProcess ExecutionProcess Execution

«busi nessClass»

Movie

ti tle: St ring

duration: Integer

«busi nessClass»Show

begi nni ng: Date = null

numberOfSoldTickets: Integer

schedule(i n begi nning: Date)

cancel()movie(): Movi e {query}

begi nni ng(): Date {query}

avai labl eTi ckets(): Integer {query}createReservat ion(in requestedTickets: I nteger): Reservat ion

cancelReservat ions()

addReservation(i n reservat ion: Reservati on)

«busi nessClass»

MovieTheater

name: St ring

shows(i n movi e: Movie): Show[ *] {query}

«busi nessClass»Theater

number: IntegerseatCount : Integer

shows(in movie: Movi e): Show[ *] {query}

shows(in movie: Movi e, i n begi nning: Date): Show {query}

1 1.. *1 1.. *

1

*

1

*

*1 *1

«busi nessClass»

Reservation

numberOfReservedTickets: I nteger

reservat ionCode: Integer

«create» create(i n show: Show, in numberOfTickets: Integer): Reservati on

*

1

*

1

«busi nessClass»

Ticket

* 1* 1

*

*

*

*

UML

Software Engineering

«busi nessClass»

Movie

ti tle: St ring

duration: Integer










«busi nessClass»

MovieTheater

name: St ring






1 1.. *1 1.. *

1

*

1

*

*1 *1

«busi nessClass»

Reservation




*

1

*

1

«busi nessClass»

Ticket

* 1* 1

*

*

*

*

UML

«busi nessClass»

Movie

ti tle: St ring

duration: Integer










«busi nessClass»

MovieTheater

name: St ring






1 1.. *1 1.. *

1

*

1

*

*1 *1

«busi nessClass»

Reservation




*

1

*

1

«busi nessClass»

Ticket

* 1* 1

*

*

*

*

UML

Software EngineeringSoftware Engineering

Rules

Rules Execution

Rules

Rules Execution

RulesRulesRules

Rules ExecutionRules Execution

BANF _Upd ateBANF _I F






configurable start page with optionally• a start page image• a start model with clickable buttons • main menu functions

views on database are configured in start model

view on processes(navigation via

process assignmenttree)

view on organization(navigation via

assignment tree oforganograms)

overview of documents(navigation via

structured document list)

overview of files (navigation via flat list of files)

End users

checkcheck

update update

create

model

create

model

transfertransfer

approvedapproved

Development database

Production database

Archive database

releasedreleased

checkcheck

approvedapproved

transfer transfer

checkcheck

checkcheck

Review database

RCM – workflow

Modelling

RCM-scripts

Database Synchronisation and Web publication

1

6a

5

4

32 6b 8

10


BPM Change BPM Change ProgramProgram


BPM KPI’s BPM KPI’s ManagementManagement& SLA’s& SLA’s

BPM BPM Financial Financial ManagementManagement

OrganizationOrganizationStandardsStandards& Ownership& Ownership

QA ManagementQA Managementfor BPM for BPM improvementsimprovements

ControlMonitoring the new

process

DefineARIS Process

Models, Objectives,Project description

AnalyseCalculations & comparisons ofhistorical data

ImproveWhat if scenariosand definition of

tasks

MeasureARIS Business

OptimizerScenarios

ControlMonitoring the new

process

DefineARIS Process

Models, Objectives,Project description

AnalyseCalculations & comparisons ofhistorical data

ImproveWhat if scenariosand definition of

tasks

MeasureARIS Business

OptimizerScenarios


BPM trainingBPM training& knowledge& knowledgeManagementManagement


BPM BPM GovernanceGovernanceManagementManagement

Change Change Management Management & & AuthorizationsAuthorizations

Structural Relations between Process Management Rol esStructural Relations between Process Management Rol es

Process Coordinator(Country 2)

Head ofGroup Process Mgmt

Head ofGroup Process Mgmt

Process Owner(e.g. Retail Loan)

…

Process Coordinator(Retail Loan)

Process Owner(e.g. …)


…



…



…



…


…

Group CompetenceCoaches

Group CompetenceCoaches

CompetenceCoaches

CompetenceCoaches

CompetenceCoaches

CompetenceCoaches

CompetenceCoaches

CompetenceCoaches

CompetenceCoaches

CompetenceCoaches

CompetenceCoaches

CompetenceCoaches

Head of PM(Country 1)




Head of PM(Country …)Head of PM(Country …)

Head of PM(Country …)Head of PM(Country …)

Head of PM(Country n)

Head of PM(Country n)

MethodologyView

Bus

ines

sV

iew

MethodologyView

MethodologyView

Bus

ines

sV

iew

Bus

ines

sV

iew

…

Process Owner(central Credit BO)






EXAMPLE

Business Business ProcessProcess ExpertsExperts

5 Year 1 Year 2 Year 3 Year 4 Year 5 totals

7.158.700 1.574.914 1.574.914 1.574.914 1.574.914 13.458.356

33.609.224 67.218.447 100.827.671 120.993.205 134.436.895 457.085.443

26.450.524 65.643.533 99.252.757 119.418.291 132.861.981

26.450.524 92.094.057 191.346.814 310.765.106 443.627.087

26.450.524 57.582.047 76.371.774 80.603.945 78.664.959

Cummulative DCF 26.450.524 84.032.571 160.404.344 241.008.290 319.673.248WACC =14%

NPV 319.673.248

ROI 3296 ,29%PBP 0,15

Discounted Cash F lows

Total cost

Total Benefits

Net Cash Flow (NCF)

Cummulative NCF

Benefit per Solution

BPM

ITAMERPGRC

CPM

BPM ITAM ERP GRC CPM

Benefits per Phase

Design

Strategy

Controlling

Implement

Strategy DesignImplementation Controlling

Costs per Phase

Strategy

DesignImplementati

on

Controlling


Costs per Solution

BPM

ITAM

ERP

GRC

CPM

BPM ITAM ERP GRC CPM

BP

M G

overnance

Opzetten BPM governance basis omgeving

Uitwerking van het BPM Governance ConceptImplementatie van het BPM Governance Concept

KP

I

Set-up PPM envrionment

Link KPI to Process model

Figure 12-2Figure 12-2

without change management

Har

t fac

ts(m

easu

rabl

e)S

oft

fact

s(li

mite

d m

es.)

Culture

ManagementEmployees

Knowledge

Organization

Processes

Strategy

IT

Scope of projects

with change managementScope of projects

without change management

Har

t fac

ts(m

easu

rabl

e)S

oft

fact

s(li

mite

d m

es.)

Culture

ManagementEmployees

Knowledge

Organization

Processes

Strategy

IT

Scope of projects

with change managementScope of projects

Process Execution

…

Process Execution

…

Process Execution

…

Process Execution

…


…


…


…

Rules Execution

…

Rules Execution

…

Rules Execution

…

Rules Execution

……

Process Structure & Levels

Standards, Conventions, Handbook, Guidelines

Tools

Procedures

Roles

Responsibilities

Steering Committee

Different SAP & BPM Projects : Blueprint, Realizati on and SupportDifferent SAP & BPM Projects : Blueprint, Realizati on and Support

CommonProcess

Repository

BPM Approach &Standards

BPMOrganisation

Standard Corporate

Process Model

Standard Corporate

Process ModelBPM Im plem en tationBPM Im plem en tationBPM Des ig nBPM Des ig nBPM Strate gyBPM Strate gy

BP M Ch ange BPM Ch ange Program & Program & Cap abi li ty manag ementCap abil i ty manag ement

BP M Sco pe &BPM Sco pe &BP M programBPM programmanagemen tma nagemen t

Bu sin ess & Bu sin ess & Prod uct requ irement sProd uct requ irement sM anage men tM anagemen t

BP M Co st &BPM Co st &Vend or Vend or managemen tma nagemen t

Bus ine ssBus ines sSt rate gySt rateg y& & KP IKP I’’ ss

Busi nes s Busi ness Transf ormat ion Transf ormati on ma nagemen tma nagement

QM stan dards QM s tan dards fo r BP M fo r BP M improve me nt simprove me nts

BPM B PM KP IKPI ’’ ssPerf orma nceP erfo rman ce& SLA& SLA ’’ss

BPM Con trol l in gBPM Co n trol l in g

BPM B PM Supp ortS upp ortMan agementM an agement

Organ izat i onOrgan izat i onSt andard sSt andards& Ow nershi p& Ow nershi p

BPM Tool s &BPM Tool s &Con fi gurat i onCon fi gurat io nSt andardsSt andards

BPM trai ni ngBPM trai ni ng& know le dge& know le dgeMan agementMan agement

Process Process & Proj ect& Proj ectSt andard sSt andards

BPM B PM Gov ernanceG ove rn anceMan agementM an agement

Chan ge Ma nagementChan ge Man agementSt andards St andards & Resp onsi bi ti es& Resp onsi bi ti es

B PM B PM O perat i onalO perat io nalman agementmana gement

BP M CC TCC e xpe rt Co nsu lt an tBP M CC exp ert sBP M and P D S A P

B PM CC e xpert sB PM an d PD SA P

B PM CC GRC ex pert Cons ul ta nt

BPM CC

B PM t ra in in g expe rtB PM ch ang e mana ger

B PM mod el ersB PM ad min ist rator

B PM S AP PD expe rtB PM CPM ex pert

B PM GRC ex pertB PM QA e xpert

BPM CC

B PM CC h ead

CPO = Chi ef P ro ces s Of f ice r

B PM E A exp ertB PM arch it ectTechnology (basi s, pr ogr amm ing, etc. .. )

GR C t eam ( cont rol s, author izat ion, etc…)

Change, C omm unicati on and Trai ning team

nt egrat ion & Docum entat ion

Technology (basi s, pr ogr amm ing, etc. .. )

GR C t eam ( cont rol s, author izat ion, etc…)


OTC e.g . Pr ocess X e.g.

Pr oject Managem ent

PT P e. g.

Technology (basi s, pr ogr amm ing, etc. .. )

GR C t eam ( cont rol s, author izat ion, etc )


I ntegr ation & Docum entat ion & Suppor t

Chi ef Infor m ation Of fi cer

ERP Co mp ete nc e Cen ter Ma na g erERP Co mp eten c e Cen ter Ma na ge r

SAP H elpd eskSAP H elpd eskSAP con sult antsSAP con sult antsSAP t est ingSAP t est ing

S AP Basi s supp ort S AP Basi s supp ort S AP ABA P Suppor tS AP ABA P Suppor tS AP SSM suppor tS AP SSM suppor t

SAP A utho ri sati on suppor tSAP A utho ri sati on suppor tSAP D ocum enta ti on sup portSAP D ocum enta ti on sup portSAP T rai ning suppo rtSAP T rai ning suppo rt

B usi nes s A rchi tec tI nf ormat io n A rchi te ct

A pp li cat ion A rchit ectI nf rast ruct uur A rc hit ect

R i sk & Co nt ro l Archi t ectQA ma nage r

Orga nisa ti on archi t ectH R M / Commu nica ti on

B usi nes s U sersL ib ra ri an

(G)BP O = (Glob al ) BP O

(G)BP M = (Glo bal ) B PM

Bus in es s Own ers

ARIS QAARIS Modeller/

BPM CC Expert

update

model

update

modeltransfer

transferrejected

rejected Archive database

archivedarchived

rejectedrejected

(G)BPO and/or

Architectural Owner

7

9

Alignment of multiple views in ARIS

Processes RFC

Process ViewsBPM targets Business RFC

Projects

Products & Services

Processes


Processes info

Processes StatusFunctions

Process Analysis

Organization

Cost BPM KPI’s

Objectives Systems / tools

Evolution of Business Modeling to Business Process ManagementB

usin

ess

Sem

antic

s Business Analysis Modeling

Operational BPM Platform

Business Strategy Modeling


Bus

ines

s S

eman

tics

Flowcharts

Corporate Process Model

Time

Business Strategy Modeling

C re a t ec u s to m e r

o rd e r

L e g a c y A p p XC u s to m e ro rd e r

c re a t e d

C u s to m e ro rd e r

re c e i ve d

S a l e s e m p l o y e e

Th r o u g h p u t t im eO rd e r p ro c e s s i n g

W I

R i s k o f m u l ti p lec u s t e n t ri e s

Publication


Agenda

ARIS BPM framework


22

11

ROI BPM framework33


Strategic Alignment is a primary driver

40%

50%

60%

70%For which of the following reasons did you implement a BPM solution?

(Multiple responses allowed)

Why start with BPM ?


62% 58% 51% 43%

51% 36% 31%

12%0%

10%

20%

30%

40%

Improve clarity and

agreement on true business

drivers

Align day-to-day

activities to business strategy

Allow effective

management intervention

Achieve speed and accuracy of management reports

Reduce cycle time of planning

and reporting

Identify and eliminate non-value add activities and reporting

Facilitate SOX ongoing compliance

Enhance productivity in day-to-day

activities

Strategy alignment Efficiency

Source: Seventh Annual Survey of Technology Issues for Financial Executives – 2005.

High level financial business case for BPM projects

ControllingControllingImplementationImplementationDesignDesignStrategyStrategy

BPM communicationsBPM communicationsManagementManagement

Reduce Operational costsReduce Operational costs

By allignment of the business usersBy allignment of the business usersand business process informationand business process information

BPM Support BPM Support ManagementManagement

Reduce BPM costsReduce BPM costs

BPM Scope & BPM programBPM Scope & BPM programManagementManagement

Reduce Project costsReduce Project costs

Business & Business & Product ManagementProduct Management

Improve RevenueImprove Revenue

By go to market alignment of business By go to market alignment of business requirements and market segments requirements and market segments

Business Strategy & Business Strategy & BPM objectivesBPM objectives

Improve RevenueImprove Revenue

By company focus on profitable By company focus on profitable market segments & market strategymarket segments & market strategy

Business Transformation Business Transformation ManagementManagement


By effective execution of the By effective execution of the business processes and planningbusiness processes and planning

BPM Tools & ConfigurationBPM Tools & ConfigurationStandardsStandards


Process & Project Process & Project StandardsStandards



BPM Change Program & BPM Change Program & Objectives ManagementObjectives Management

Reduce HRM costsReduce HRM costs

By allignment of HRM / resource By allignment of HRM / resource planning and company objectivesplanning and company objectives

By efficient support management of By efficient support management of the BPM business processesthe BPM business processes

By optimalisation of the company By optimalisation of the company project portfolioproject portfolio

BPM KPI Management BPM KPI Management & SLA’s& SLA’s


By management on the BPM KPI By management on the BPM KPI performance of the processes performance of the processes

BPM Financial BPM Financial ManagementManagement


By controling the ROI of Projects By controling the ROI of Projects and company costs (ABC)and company costs (ABC)

Organization Organization Standards Standards & Ownership& Ownership


By efficient design and utilizationBy efficient design and utilizationof the process organisation of the process organisation

QM standards for BPM QM standards for BPM ImprovementsImprovements


By optimalisation of the By optimalisation of the business processesbusiness processes

By efficient configuration and By efficient configuration and validation of the processes validation of the processes

BPM training & knowledgeBPM training & knowledgeManagementManagement


By improvements of the BPM By improvements of the BPM competencies of the employees competencies of the employees

By efficient design and utilizationBy efficient design and utilizationof the business processesof the business processes

BPM Governance BPM Governance ManagementManagement

Reduce BPM costsReduce BPM costs

By effcient management of the BPMBy effcient management of the BPMorganisation and the BPM standardsorganisation and the BPM standards

Change Management Change Management & & AuthorizationsAuthorizations


By efficient implementation of theBy efficient implementation of thejob descriptions and authorizations job descriptions and authorizations

BPM Business Value Map

Business Strategy Management 70.974 Business Management 85.169 Business Transformation 184.400 Business Communication Management 147.520BPM Program Management 38.400 BPM Design 38.400 BPM Configuration Management 25.600 BPM Support Management 4.750BPM Change Program 44.820 BPM Organizational Design 12.800 BPM Change Management 12.800 BPM Governance 3.800BPM Financial Management 73.760 BPM Quality Management 442.560 BPM Knowledge Management 221.280 BPM Objectives Management 73.760

Total 227.954 Total 578.929 Total 444.080 Total 229.830 Total 1.480.793

BPMBPMBPMBPM



The financial calculations are based on the following financial key figures;

� Revenue

� Yearly logistic / operational costs

� Yearly Employee costs

� Profit margin

� Yearly cost of project portfolio

� Yearly average BPM project costs

� Yearly average BPM maintenance costs

5 Year 1 Year 2 Year 3 Year 4 Year 5 totals

7.158.700 1.574.914 1.574.914 1.574.914 1.574.914 13.458.356

2.231.651 4.463.301 6.694.952 8.033.942 8.926.602 30.350.447

-4.927.050 2.888.387 5.120.038 6.459.028 7.351.688

Total cost

Total Benefits

Net Cash Flow (NCF)

Benefit per Solution

BPMITAM

GRC

CPM

CAF

BPM ITAM CAF GRC CPM

Benefits per Phase

Design

Strategy

Controlling

Implement

Strategy DesignImplementation Controlling

The benefits of a Holistic BPM Strategy

In what area will I benefit the most?

When will I reach the benefits?


-4.927.050 -2.038.663 3.081.375 9.540.403 16.892.091

-4.927.050 2.533.673 3.939.703 4.359.660 4.352.789

Cummulative DCF -4.927.050 -2.393.377 1.546.326 5.905.986 10.258.775WACC =14%

NPV 10.258.775

ROI 125,51%PBP 2,22

Discounted Cash Flows

Cummulative NCF

Costs per Phase

Design

Strategy

Implement

Controlling


Costs per Solution

BPM

ITAMGRC

CPM

CAF

BPM ITAM CAF GRC CPM

In what area should I invest?

When should I invest?

Support of the Central Management Team and the CPO is required.Support of the Central Management Team and the CPO is required.

ROI calculation can be made based on annual report and benchmark valuesROI calculation can be made based on annual report and benchmark values

McKinsey Global Survey

750+ CEOs 750+ CEOs agree that Business Model Innovation and Strategic Flexibility / Business Agility are top priorities and Critical Su ccessFactors.


Any questions?Any questions?

Frank Luyckx

T: +31(0)6 433 642 32


T: +31(0)6 433 642 32

[email protected]

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