corporate development and it - eth zürich - homepage | … · · 2016-11-29corporate development...

Corporate Development and IT

Part 8

WRAP UP

Thomas Gutzwiller

12. December 2016

2| Thomas Gutzwiller - Transformation

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The St. Gallen definition of an enterprise / a comp any / a firm

A productive social system.


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St. Gallen definition of Management/Leadership

Management/Leadership is "creating, steering and developing productive social systems".

Start(create)

Run / Grow(steer)

Change(develop)


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Strategy Aspects

Aspects of Strategy

Strategy asa Process

Strategy asContent

(as a Product, as a Result)

Strategy in aContext

(Situation, Past Events,Self-Image, Myths, Beliefs,

Political Constellations, Leadership Style,

Incentive Systems, ...)

MechanicalProcess

Socio-psychological

Process


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St. Gallen Strategy Understanding: Order is key.

Order Categories

Productive System Social System

• Strategy• Structures

and Processes• Systems

• Identity / Vision• Mission / Purpose• Values / Norms• Leadership Style

MECHANICS("Hard" Factors")

PSYCHOLOGY("Soft" Factors)


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St. Gallen Management Understanding: The 3 main man agement levels

Normative ManagementSense in the Social System:

“Leadership”

Strategic ManagementTransformation:

“Start/Change the Business”

Operational ManagementOperations:

“Run and Grow the Business“


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The 3 main management levels

Normative Management(Identity/Vision, Mission/Purpose, Values, Style)

Strategic Management

Operational Management $

+

-

-

Alters Configuration

Energizes

• Salaries• Boni• Dividends/

Interest• Taxes

Investments

V.A.


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Increasing dynamics and accelerating pace of change are characterizing our current situation and future outl ook

Globalization / Large Regional Clusters (USA, EUR, CHN, IND, SEA)

Technology (Product / Process)

Customer Orientation / Solutions Orientation

Deregulation / Regulation /Privatization

Consolidation / M&A

Since WW II strongly accelerating transformation rh ythm.But we are only at the beginning!


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Pathology of death

• Strategic Crisis

• Earnings Crisis

• Liquidity Crisis

Companies fail exclusively because of internal reas ons. It is not the market which makes companies fail.

3 types

of crisis


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Project management

+ Project process model

+ Change management

= Transformation management

Mechanics/„Intellect“

Psychology/„Emotion“

The „Beer Formula“ 1

Transformation management comprises project management discipline,

proven project process models and change management discipline.


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The „Beer Formula“ 2

Ease of change = f (D x M x P)

D = Dissatisfaction (crises, pain felt over current situation)

M = Model/vision of what the changeneeds to achieve

P = Process for change, reasonablyplanned but organic enough tobe altered.

If D, M or P tend towards zero, then ease of changetends towards zero.


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§ Adaptive Firm Less adaptive Firm

Val

ues

•Adaption ability / industry leader

•Appreciation of all stakeholders (clients, employees, shareholders,...)

•High performance orientation

•Priorities on leadership / skill development

•Tradition / Continuity•Either customer or shareholder value driven (one dimensional)

Sty

le

•Externally oriented•Innovation oriented•Collaborative / team oriented

•Internally oriented•Either highly decentral or central

Indicators of Adaptivity

Source: Tedlow.


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Bold strokes

Few examples

Long marches

TOP DOWN

HIGHINVOLVEMENT

RAPID EVOLUTIONARY

Few examples

Which are the basic change strategies?


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General Corporate Development Scenarios

[o] Status quo

[i] Reconfiguration of the

"V.A. Engine"within an adaptive culture

[iii] Cultural renewal without

reconfiguration of the

"V.A. Engine"

[ii] Reconfiguration of the

"V.A. Engine"and cultural renewal

RUN the

BUSINESS

CHANGE the

BUSINESS

RUN the

CULTURE

CHANGEthe

CULTURE

Psy

chol

ogic

al D

imen

sion

Mechanical Dimension


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Target business architecture

Target process architecture

Target IS/IT architecture

PROCESSES implement the STRATEGY and SYSTEMS support PROCESSES

Strategy

Processes

Systems

Integration of strategy – processes – information sys tems


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A target business process architecture answers the following questions:

• Which products do I sell and how broad and deep is my product range?

• To which customer segments do I sell them?

• On which regional markets do I sell?

• Via which distribution channels do I sell?

• And most important: How does the mix of the four dimensions “product – customer segment – regional market – distribution channel” looks like?


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A target process architecture answers the following questions

• Identification of the processes

• Structuring of customer relationship interactions– Process outputs

– Quality levels

• Definition of process flow

• Definition of organizational chart and sizing

• Setup of process management– Definition of key performance indicators

– Process targets


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• Definition of the applications– Business applications

– Support applications (Office, Mail, DMS, WF, ...)

• Definition of the high level interfaces between applications

• Definition of the information systems development methods

• Definition of the software development environments

• Definition of the IT components– Operating systems

– Data base management systems

– Network technology

– Security

– Network & systems management

– Services

– Middleware

• Definition of the IT production sets out of the IT components

... Information systems (IS) ... Information technol ogy (IT)

• Definition on which IT production sets the applications reside

A target IS/IT architecture answers the following q uestions about


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Migration means executing several projects –

Beer Formula 3: Transformation mechanics = Architec ture + migration

Current architecture Target architecture

Migration

Business transformation means migration from a curr ent architecture to a target architecture on all three levels

Strategy

Processes

Systems

Strategy

Processes

Systems


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Critical issue:Overseeing the complexity of change/transformation

and the own capabilities (resources)

Σ Σ

Current projects

Change requests out of current

business

Mergers & acquisitions

Migration

MY USD

Political and legal requirements

Control of change through programs/projects


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Customersegement

Product /Service

Regionalmarkets

Distributionchannels

Customer relationship interaction (CRI):- Process outputs

- Quality level

Macroprocess

ST

RAT

EG

YP

RO

CE

SS

ES

SY

ST

EM

S

Micro process

Activity

Transaction

Application

How are the different levels integrated?

IT Production Set IT Component


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Key design decisions in mechanics of change

Product/Service

RegionalMarket

CustomerSegment

Customer Relationship Interaction

MacroProcess

bundles

Micro Process

is subdivided into

Activitycontains

Transaction

uses

Channel

offers

servesserves

uses

needs transportsoffershas

Strategy

Processes

Systems

Business Field

ApplicationSystem

is provided by

Breadth of rangeDepth of range

Manufacturing depth


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Strategy Types

Corporate StrategyWhich businesses are we in (long term view)?What resources do we allocate to those businesses?Which synergies (see Config. Strat.) do we strive for ?Which alliances?

Business StrategyWhere and against whom and how /with what do we compete? What makes us valuable? Do we want to differentiate? Where and how? Where and how do we want to grow?

Functional StrategiesWhat are the guiding principles and standards for o ur businesses with regard to general business functions?

Configuration StrategyHow do we configure the "Value Added"-Engine? Where are areas of freedom and where do we seek for synergies? Why? How are we as a result of this organized in terms of processes and structures?

Owner StrategyIs our business optimal in terms of risk and reward s compared to othershareholder investment opportunities? What are the expectations of the principal?


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Strategy Types (Detailed View)

• Portfolio• Alliances• Value Chain

Configuration(Synergies)

Corporate Strategy

• Porter 5 Forces• Cost Leader /

Differentiation Strategy

Competitive Strategy

Business S

trategy• Ansoff

Strategies

Product/Market Strategy

Clie

ntC

ompe

titor

for HR, IS/IT, Finance, Controlling, R&D, ...

Functional Strategies

Value ChainConfiguration(Synergies)

Business Fields and Value ChainConfiguration (Synergies)


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Top management

Middle management

Employees

Front operations,

back operations

Sta

fffu

nctio

ns

ExecutiveBoard

Where are the „designers“? Where are those who are „designed“?

What are the basic stakeholder groups of a company during a change?


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Where is the largest source of danger?

Top Mgmt.:Shared vision,

leadership

Employees:Willingness and

capability ofchange

Middle management:role model,

communication

Say Yes, mean Yes

Loyalty

Trust

The different stakeholders have to be prepared – for what?

Change management requires certain attitudes with all affected stakeholders:


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Contact

Communication

Trust

Outcome

„Trust needs touch“

+ +=

Beer Formula 4

Trust is a considerable success factor for change. How to build trust?


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Two levels in bilateral communications

Relationship Level(Authenticity, Empathy, Esteem)

Material Comm. Level


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Sty

le

Collaborative

Consultative

Directive

Virtual Physical

Form of contact/communication

Communication is the starting point to build trust


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Communication

Stakeholdertreatment

Individualnegotiation

(social interaction)

Feedbackgroup

Broad communication(target groups)

Target group communication

„Product“-information

„Process“-information

Influence/negotiate Communicate

In communication we have to differentiate...


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Stability

Denial

Anger

Bargain

Depression

Testing

Acceptance

Active

TIMEPassive

EM

OT

ION

AL

RE

SP

ON

SE

Immobilization

Reactions on change are very similar to reactions i n a case of death,a breakup, getting fired etc.

The intention is to pass through thephases in an adequate period of time.

Reactions on change: Typical behavior of the “design ed”


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Business analytics (performance) and values as a vi tal elementof the “Buy in”.

Perfor-mance

high

low

low highValues

Educate andreassess

Promote

Teach andcheck next

timeLet Go

Case for change as a central element


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Resource allocation

RUN CHANGE

Resources for daily business

IncrementalImprovements

Programs/projects

Control through business units Control through execu tive board

Operations Transformation

Investments

Control of resource allocation


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TIME HORIZON

Products (innovation, product range/breath and depth,manufacturing depth/sourcing)/services

Regional markets/market entries

Distribution structure

Orientation to customer segmentsST

RA

TE

GY

Process architecture/ business model

Architecture ofinformation systems

Project portfolio

Projects

Incremental changes/maintenance

Operations

Strategic planning

Implementation plan

Implementation

� Strategy management process � Project development process

� Operations � Incremental improvement process

�

�

�

�

From strategic planning to operations

Long-term Middle-term Short-term


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Project portfoliomanagement

External projectmanagement

Internal projectmanagement

Active and planned projects

Project A Project B

Sub Pro-ject A1

SubPro-jectA2

Phase 1

Phase 2

Phase 3

Activity

• Development and control of all active and planned projects

• Planning and managementof project teams and activities with the help ofa project process model(Beer Formula 1)

• Controlling of single projects (black box)

Levels of project management within CHANGE


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BOTTOM UP STREAM

Pushed from a business unit point of view, mostly for elimination of certain organizational deficiencies.

Part of the incremental development stream.

TOP DOWN STREAM

Out from the company’s strategy. Pushed from the executive team.

Part of the strategic/transformational development stream.

Often project initiatives are contradictory.

And often resources are not enough tosatisfy all projects.

Projects come up top down and bottom up


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Responsibility of management with respect to resource allocation

Busin. Unit 1

Individual responsibility

Busin. Unit 2

Individualresponsibilityfor operationalcost/profit

Busin. Unit 3 …… n

CH

AN

GE

RU

N

Strategic programs/projects

Des

igni

ng in

stru

men

tsfo

r ch

ange

= Resources for strategic programs/projects

= Resources for business-unit specific programs/projects and maintenance

Shared responsibility of exec. board

Prioritization method


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Business Unit specific steering committee

Steering Committee strategic programs/projects

Line organization of Business Unit

Steering committees to control change

Responsibility of management in respect to resource allocation

Shared responsibility of exec. board

Busin. Unit 1

Individual responsibility

Busin. Unit 2 Busin. Unit 3 …… n

CH

AN

GE

RU

N

Changing the business model

Running thebusiness model


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Overall Concept

Strategy development

Process development

Implementation

Information system integrationInformation system planning

Standardsoftware

implementation

Process andsystem

integration forlegacy systems

Proprietarydevelopment


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Overall Concept

• The interrelationships between Strategy, Processes and Information Systems are explained with the use of a Meta Data Model and a Project Process Model .

• A Meta Data Model is a concept ional Data Model of the underlying method. It contains the main design objects of the method and explains the concept ional relationship between those design objects.

• A Project Process Model subdivides the project process of the method in overlookable design steps in a proposed sequence.

Every method can be described by a Meta Data Model and a Project Process Method.


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Strategic businessfield (target)

Customersegment

Distributionchannel

Regionalmarkets

Products/services

providesservesusesserves

Meta data model „Strategy development“ – overview


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General project process model for „Strategy developm ent“ - overview


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Understanding the difference between “product/servic e” and “process outputs” (customer relationship interactions)

Product/service $

Product information

Reservation

Payment methods

and terms

Warranty handling

Recycling

etc.

Process outputs (customer relationship interactions)

You pay for the product/service. Buying decisions are often based on the right process outputs (customer relationship interactions)


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Source: Muther, 1998

Process outputs (customer relationship interactions , CRI’s) is the anchor point for process development

Customer Buying CycleSupplier Customer

After sales Motivation

Purchase Evaluation


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Effectiveness before efficiency

Process outputs (CRI’s) as basic indication for pro cess development

• We want to distinguish between

– „Doing the right things“ (effectiveness) and

– „Doing the things right“ (efficiency)

• All too often existing processes are redesigned (efficiency) without thinking about their effectiveness.

• Therefore process development always begins with process outputs (CRI’s) and asks the question, if the right process outputs are generated for the specific process customer. Only then the question will be answered, how the process performance can be provided most efficiently.


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Strategicbusiness field

Customersegment

Distributionchannel Region

Market service(Product, service)

providesservesusesserves

Process output(Customer relationship interaction)

Macro process

Micro process

Activity

bundles

is divided inprovides

contains

Meta data model „Process development“

makes use of


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Organizer/business manager

Business analystSoftwareengineer

Development of organizational structures, CRI’s, processes and instruments for management

Development of business support applications andintegration of standard application software Development of software

Diverse perspectives regarding process andinformation system development

• In process and information system development several parties (roles) are involved

• They have different perspectives on the process and information system development


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Activity sequence

Process output(customer relationship

interaction)

Business partner(process customer)

Key performanceindicator

Process

Activity

Location

Position

goes to

relates to

produces

has

contains

iscontainedin

is realized by

is linked to

Perspective of organizer/business manager


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Activity sequence

Process

Activity

Transaction

Application

Transactionsequence

Document,list, message Screen

Screen sequence(Dialog)

Effect

(Data)Object type*

Data base

*Entity type

contains

is contained inuses

contains

contains

on

has

hasproduces

is containedin

is contained in

Perspective of business analyst


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Transaction

Application

(Data)Object type*

Data base

*Entity type

Program

Service function(method, services)

Library

Effect

contains

is realized as

uses

contains

has

on

contains

Perspective of software engineer


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ORGANIZER/BUSINESS MANAGER

BUSINESSANALYST

SOFTWAREENGINEER

Program

Service function(method, services)

Library

Transaction

Application

Activity sequence

Process

Activity

contains

uses

uses

is containedin uses

contains

is realized as

Interfaces between different perspectives


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Product/service

Regionalmarket

Customersegment

Processoutput

(customer relationship interaction)

Macroprocessbundles

Micro process

has for CRI delivery many

Activitycontains inprocess flow

Transaction

uses

Distributionchannel

contains

contains contains

contains

consumes transportsoffersHas in thecustomer buying cycle

Businessstrategy

Process

Informationsystem

Strategicbusinesssegment

Program

is realized as

Integration of “Strategy”, “Process” and “Informationsystem” (Meta data model)

delivers


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The 5 management level model of the St.Gall “Total Information Systems Management”

IS concept

IS architecture

IS project-portfolio

IS project

IS supportIS = information system


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Project costs

Project timeBenefit of design products

(scope of benefits)

It is normal, that projects cause quality problems,that means that costs, time or benefits are not

fully reachable.This must be managed accordingly.

Determinants of project quality – the magic triangle


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Quality assurance

Constructive Analytical

Projectprocessmodel

Generalproject

managementprocess

Qualitycontrol

Qualitytest

Basic concepts – Categories of quality assurance

Rev

iew

Test

Aud

it


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Projects in a two-party contract relationship

• Often we have situations in major projects, where the management engages external suppliers (e.g. consulting companies or outsourced IT).

• In this case responsibility between the parties has to be regulated. The ISO 9001 Norm offers an instrument for that.

• Basically responsibility is defined as follows:

– Client:

• „Product responsibility” – is responsible for costs, deadlines and benefits (scope of benefits)

• Project control on the level of „external project management“

– Supplier:

• „Process responsibility“ – is responsible for a “state of the art” project process, which he is able to handle (ability of repetition)

• Project control on the level “internal project management”


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Project committeeReview team

(experts)

Project owner (client)

Client project leader

Client organization has“product responsibility”

Client organization


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Supplier organization has„process responsibility“

Supplier

Supplier project leader

Team 1 Team 2 Team n...

Supplier organization


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Tasks of quality assurance

TestReview Audit

Internalreview

Externalreview

Internaltest

Externaltest

Methodaudit

Project leadership

audit

SU CL CL CLCLSU

CL = Client, SU = Supplier

Control tasks in the context of analytical quality assurance


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Regular method audits

Target: - Regulation of the Client-Supplier-relationship(Two-party contract relationship)

- „Self enforcement“ of the supplier to quality orientation

Method: Definition of projectprocesses (project activities, results, roles etc.)

Definition of configuration management for the purpose of evidence documentation (Management of versions and change requests regarding results)

Definition of quality management system (institutional basis in the company)

Certification afterISO 9000 Series

Publication toclients

Constructive quality assurance – ISO 9001


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* Humphrey, SEI, Carnegie Mellon University

Constructive quality assurance – SEI-Process-Maturit y-Schema*

• Target:

Evaluation of performance of suppliers in information system development.Originally initiated by the Department of Defense of the United States.

• Method:

Analysis and classification of suppliers in the following 5 stages of maturity

– 1: Chaotic process

– 2: Repeatable process

– 3: Defined process

– 4: Controlled process

– 5: Optimized process


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Ongoing and planned projects

Project A Project B

Project portfoliomanagement

External projectmanagement

Internal projectmanagement

Subpro-jectA1

Subpro-jectA2

Phase 1

Phase 2

Phase 3

Project activity:

Executive board

Project owner(client)

Supplier

Steeringthrough:

Project execution according project process model

Levels of the project management


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Steering committee

Project committee

Sub project leader

Sub project team

Project committee

Sub project leader

Sub project team

Projects

...

Project owner

.....

Project owner

Program manager

Organization of major projects/programs

Supplier

Supplier:Project manager

Client: Project manager

Supplier:Project manager

Client: Project manager


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The 8 essential documents of project management

1. Study request or project request

2. Project steering decision

3. Project plan – structure plan and master plan

4. Action plan

5. Work order

6. Time sheet

7. Project status report

8. Phase end report


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1. Study request or project request

2. Project steering decision

3. Project master plan

4. Activity plan

5. Work order

6. Time sheet

7. Project status report

8. Phase end report

Client Supplier(external PM) (internal PM)

X

X

X

X

X

X

X

X

To whom are the documents primarily attributed?


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Six techniques of change management within a progra m/project

1. Team management

2. Stakeholder analysis

3. Project environment analysis

4. Information concept

5. Feedback group

6. Coaching

corporate development and it - eth zürich - homepage | … · · 2016-11-29corporate development...

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