intalio growing-your-business-with-bpm-11 nov14

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Growing Your Business with BPM

The JSR Micro Story

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Biographies

Nathaniel Palmer .

Nathaniel Palmier is Vice President and CTO of BPM, Inc. as well as the Executive Director of the Workflow Management Coalition. Previously he had been the BPM Practice Director of SRA International, and prior to that Director, Business Consulting for Perot Systems Corp, as well as spent over a decade with Delphi Group serving as Vice President and Chief Analyst.

Jim MulreadyJim Mulready has been head of Quality Assurance for JSR Micro since 2007. In this role he is responsible for all aspects of both product and business process quality, as well as alignment and shared learning among multiple JSR Member Companies around the world.

Neil Simpson Neil Simpson is the founder of Innovelocity, a Business Process Management (BPM) consultancy and VAR with a 7-year track record delivering high-value solutions for clients in Healthcare, Government, High Technology Manufacturing and Automotive Manufacturing. Prior to Innovelocity, Neil held business process leadership positions at Intel Corp and Blue Shield of California.

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Agenda

Growing Your Business with BPMNathaniel Palmer, BPM.com

JSR Case StudyNeil Simpson, Innovelocity

Jim Mulready, JSR Micro

Questions and Answers

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Growing Your Business with BPMNathaniel Palmer, BPM.com

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Growing Your Business with BPMOpportunity Knocks, Be Ready!

“. . .a discipline involving any combination of

modeling, automation, execution, control,

measurement and optimization of business activity

flows, in support of enterprise goals, spanning

systems, employees, customers and partners

within and beyond the enterprise boundaries.”

Source: http://bpm.com/what-is-bpm

What is BPM?

Identifying and Differentiating Between Case Management and Traditional BPM

Defined Start Point

Defined End Points

In Between the Process Follows a Predefined Path or Otherwise Fails

Case Management Adapts to the Context of the Case, Guiding the Outcome Based on the Combination of Defined Goals, Rules/Policies, Data, and Application of Knowledge Worker Know-How.

Driving Compliance and ScalabilityThrough Measurable and Repeatable Processes

BPM Processes Are Deterministic, Where All Possible Paths Are Pre-Determined or Known in Advance, No Matter How Complex the Pathways May Be.

The Direction of the Process is Determined by the Pre-Defined Path and Current State; State is Determined by the Preceding Activity.

This is often critical for ensuring compliance and consistency – knowing work is done right each time.

End-to-End Processes Must Accommodate Both Orientations Within a Single Process

A Library of Process Fragments Can Be Called on to Automate Mundane

Tasks or Regulated Processes

An Event Occurs Which Launches a

New Process / Case

The Case is Completed

When Criteria is Met

Analytics Help Define How the

Case is Processed

Information is Captured and Added to the Case

Business Rules, Policies and Processes Are Run

Against Case Data

Ensuring continuity across multiple channels, including mobile devices

with inconsistent connectivity

Shift to “Intelligent BPM” and “Smart Processes” . . . Leveraging Rules / Policies, Goals and Intelligent Agents

More Agile Execution Models Allows for Adapting to Meet Goals, Rather Than Sticking Strictly to Predefined Paths

Allows Separating Automation of Mundane Tasks for Efficiency, While Keeping the Overriding Focus on Effectiveness

Customer-facing Processes Require BPM and Case Management

Accommodating More Comprehensive, Longer-livedDynamic Process Lifecycles

From Transactional (Control) to Data-Driven (Visibility)

“Data-Driven” = Shift to Information-Intensive, Adaptable Processes Driven by Analytics, Context, and External Events

Customer-facing Processes Require BPM and Case Management

Asking the Right Questions

Creating a Metrics-driven Culture

Setting Expectations for Growth NOT Cost Savings

Scaling the Program for Success

Picking the Right Starting Point

Top 5 “Must Do” Steps for Transforming Customer-facing Processes

How Will This Improve The Customer’s Experience?

Who Benefits From The New Process or System?

What Metrics Provide the Best Measurement of Success for This Process?

How Do We Engage Our Customers’ Perspective in the Understanding and Definition of the Business Process? (“voice of the customer”)

Are the Terms (vocabulary) Consistent and Mutually Understood?

How Many (which) Systems Need to be Accessed to Perform this Process?

Will the Users of the Process Measure Success the Same as Other Stakeholders and/or Sponsors? How is This Tested?

Asking the Right Questions of Your Team

Your Strategy. . . Develop a “Metrics Culture” Across Your Organization (not just your own team)• Know When and How Success Will be Measured

• Show Results Frequently and On Time

• Formalize Your Own Customer Experience Maturity Model (pick one, define one, but use it)

Your Strategy. . . Sell Your Program on Growth vs Cost• Know Your Metrics and Make Them Visible

• Target Growth Areas With Momentum

• Engage Customers Throughout – Directly and Through Stakeholders

Your Strategy. . . Scale Your Team With the Program• Start With Cross-Functional Team / Skillset

• Release Often – Results < 90 Days

• Create a Feedback Look for:Target -> Results -> Review -> Redeploy

•Get Started!

…Yet 54% of Projects Fail!*

Why?#3 – Lost Executive Sponsorship

#2 – Resistance by End Users & Stakeholders

#1 – Failure to Define Realistic Boundaries

Business Process Improvement is #1 Priority Today…

*source: BPM.com’s BPM Market Survey

Setting boundaries; avoid processes that:

√ are already well-defined,

√ are overly complex, or

√ are politically charged.

Look for opportunities and processes that are characterized as:

√ paper-intensive, involving tasks done on a frequent basis (daily),

√ lacking a rigid or controversial definition, and

√ having an immediate and measurably positive impact on customers, stakeholders and/or end users.

Avoiding the Top 3 Mistakes Most Companies Make With BPM Initiatives

Avoiding the Single Greatest Mistake:Picking the Right Starting Point

Comp

lex

Tactical StrategicAlignment With Business Goals

Simp

leDe

gree

of D

ifficu

lty

Limited Value,Low Visibility

Likely Target Area

High Value,High Risk

Industry Shift From Efficiency to Effectiveness

It’s No Longer (just) About Saving Money, TodayIt’s About Making MoneyFocus on Response Time and Customer Experience

Success Metrics and Performance Objectives are Increasingly Revenue-Focused not Cost-Driven

Growing Your Business with BPM: Final Strategy Take-Aways

Goals and Metrics Meaningful to Customer Engagement Should Drive Any Process Improvement Strategy

Meaningful Transparency of Business Operations Requires Visibility Into Customer Interaction

Focus on the Ability to Measure Performance and Progress in Holistically, Across the Entire Customer Experience Lifecycle

Growing Your Business with BPM: Final Strategy Take-Aways


The JSR Micro Case StudyNeil Simpson, InnovelocityJim Mulready, JSR Micro

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The JSR Micro Story

Discuss how a growing organization leveraged BPM to scale its operations effectively and efficiently:

Company, situation and strategic objectives

Key results

Key components of the BPM program

Three example processes

Summary of best practices

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JSR Micro, Inc. Background

Established in 1990

Subsidiary of JSR Corporation

Facilities in US, Europe and Japan

Largest Photoresist supplier to semiconductor manufacturers

Recently added Energy & Life Sciences requiring rapid growth

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Removing Obstacles to Growth

1. New Product Lines

2. New Customers

3. New Employees

4. New Business Processes

Situation Objective

Maintain product & service quality

Keep admin overhead under control

Speed up adoption of new and changed business processes

Continue to satisfy stringent customer, legal and financial audit requirements

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Goals for the BPM Program

For Key Business Processes:

Ensure consistent, structured process execution

Ensure complete, accurate audit documentation

Improve throughput time: eliminate processing delays

Minimize overhead: reduce manual effort, rework

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Result: Improve Throughput Time

0 2 4 6 8 10

Automate or Remove Steps

Accuracy of Data Capture ( < rework)

No steps missed (< rework)

Visibility & Reminders (< delay)

Primary causes of process TPT reduction

45%throughput time improvement

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Result: Minimize Overhead

0

2

4

6

8

10

12

14

16

18

2009 2010 2011 2012 2013 2014

JSR IT Dev Headcount vs. Deployed Processes

Headcount Processes

0additional IT headcount

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Result: Audit & Structure

“I haven’t yet been asked a question by an auditor that I couldn’t answer by immediately pulling up the data in Intalio.”

- VP Global Quality 0audit issues

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Pulling the program together

2. Iterative Execution Framework

3. Process Focus and Process Ownership

4. Flexible Technology

Controlled, linear workflow Compliance Focused

Dynamic case management Collaboration Focused

JSR Strategic Objectives

1. Clear, Actionable Program Goals

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Scope of the program: all aspects of operations

Research & Development

Purchasing &Logistics (3)

Purchase Requisition,

SKU Request,Material Transfer

Planning & Trade Compliance

Manufacturing, Engineering & QC (3)MSDS Request, Specification Change,

Process Change

Organization Support (4)IT Request, Near Miss Report, Maintenance Request, Visitor Registration

Sales, Customer Service & Quality Assurance (5)Issue Management, Price Quote, Customer Compensation, Engineering Support, Sample Request

Cust

omer

s

FinishedProduct

ProductReqts.

Delivered Product,Returns

3a

5a

1a

2a

ProductReqts.

8a

Supp

liers

6b

Vend

ors

3rdPa

rty

Mfg

9b

6a

9a

10a

7a

Demand Forecast

2b

3b

4.a

4b

5b

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Real-World Examples

Let’s drill down into three key processes: issue management, specification change, and engineering support…

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Issue Management: Initial State

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Issue Management: Opportunity

1. Ensure all quality, environmental and safety issues are handled quickly, consistently and compliantly.

2. Provide issue handling history to support a wide variety of audits.

3. Provide “one click” status and process improvement reporting capabilities.

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Issue Management: Process

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Stage due date and total closure target date is calculated using rules table (# days from submission)


Issue Management: Business Rules

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BAM reports pull data in real time, and are highly customizable – allowing filter and drill-throughs into more detailed data.

Reports can be exported to PowerPoint, Word or Excel at the click of a button


Issue Management: Real-time visibility

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0

100

200

300

400

500

600

2011 2012 2013 2014

Max # Days Open, Valid Customer Complaints


Issue Management: Continuous Improvement

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Specification Change: Opportunity

Ensure that changes to material specifications:

Go through appropriate cross-functional reviews

Are reviewed and approved by the customer

Have all proper implementation steps completed

Have complete audit history and traceability in the event of future changes or quality issues

Are processed quickly and without delays

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New Request

SCB Review

Intercompany Review

Customer Approval

Corrective Action

Internal Changes

Issuance

Closed-Issued


Specification Change: Process

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New Request

SCB Review

Intercompany Review

Customer Approval

Corrective Action

Internal Changes

Issuance

Closed-Issued


Specification Change: Tracking

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0

10

20

30

40

50

60

70

FY-10 FY-11 FY-12 FY-13

Avg Days Open

Median

Avg # of Open Specs

Specification Change: Continuous Improvement

Spec Processing Improvement Trend

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Engineering Support Request

Situation:

Ad-Hoc process where Sales team requests support from the Engineering team (e.g. obtaining detailed data)

Excel Based – hard for Sales to access remotely, inconsistent tracking and status reporting for Engineering.

Opportunity:

Make it easier for Sales to request support from the engineering team

Allow Engineering to respond more quickly and assign the work

Allow business “Process Owner” to quickly adapt reporting and data collection “on-the-fly”

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Engineering Support: easy to make requests

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Engineering Support: easy to track/manage

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Engineering Support: easy to modify

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Effort Time

Requirement gathering 2 hours

Development & QA 3 hours

User testing 5 hours

TOTAL time to finished application 10 hours

Engineering Support: rapid development

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Lessons learned & best practices

Guided by Strategic Goals

Strong Partnership with Process Owners

Process modeling and simplification before automation

Re-usable templates & best practices

Continuously monitoring results and improving

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Q & ANathaniel Palmer, BPM.comNeil Simpson, InnovelocityJim Mulready, JSR Micro

for more information on Intalio or additional success stories, see www.intalio.com or contact us at [email protected]

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http://www.intalio.com


Growing Your Business with BPM

The JSR Micro Story

for more information on Intalio or additional success stories, see www.intalio.com or contact us at [email protected]

50

http://www.intalio.com

intalio growing-your-business-with-bpm-11 nov14

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