smarter process amsterdam ajay satsangi
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Enabling a Globally IntegratedEnterprise by Making Processes Smarter
Ajay Satsangi,Distinguished Engineer, Enterprise Process SimplificationIBM CHQ Enter rise Transformation
2013 IBM Corporation
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Topics
IBM's Ongoing Transformation Journey
Smarter, as Value Driver and Fuel for Innovative Transformation
A Few Examples at IBM
BPM for SAP
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2002
Sharing & partnering
2006
Globally integrating
IBMs Ongoing Transformation JourneyThe Smarter phase of our transformation is underway
33 2013 IBM Corporation
2010
Making things smarter
Instrumented, interconnected, intelligent
Enable growth
Optimize the whole system
Right skills, right place,right cost
Rationalize supportfunctions for greaterefficiency
Radically simplifyprocesses
Consistent set of processes worldwide
Leverage best practices
Standardize and reduce waste
Governance and performancediscipline
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Transformation Framework
BusinessProcess
Excellence
Organizational &Culture Change
IBM Strategy
IBM Values
Guided by the IBM Strategyand grounded in our Values
Enable transformation atthe intersection of
IBMs Approach to Transformation
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InformationTechnologyEnablement
Enabling Growth Enabling Productivity Enabling Change
Growth markets leadership
Mergers & acquisitions
State-of-the-art salesenablement
Value Services
Business processexcellence
IT enablement
Transformational leadership
Organizational ChangeManagement
Values-based culture
Transformation Focus Areas
,technology and culture
Sustain our strength in theglobal marketplace byfocusing on areas thatenable growth, productivity,and culture change
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The EPF includes 3 categories of Level 1 processes cutting acrossbusiness units and geographies Hardware Software Services
Americas NE/SW IOT JapanGMU Americas NE/SW IOT JapanGMU Americas NE/SW IOT JapanGMU
O p e r a
t i n g
( C l i e n
t F a c
i n g
) 2.0 Market to Opportunity
4.0 Order to Cash
3.0 Opportunity to Order
1.0 Idea to Market
Our Enterprise Process Framework (EPF) provides a commontaxonomy and foundation for process integration
EPF Overview
Process taxonomy designedto help categorize informationon business processes tosupport transformation,
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11.0 Manage Finances
10.0 Manage Human Resources
12.0 Manage Business Transformation & Information Technology
13.0 Manage Web & Business Support S u p p o r t
i n g
( F o u n
d a
t i o n a
l
P r o c e s s e s
)
8.0 Manage Sales and Channels
7.0 Plan and Manage Client Relationships
6.0 Develop Strategy to Execute
9.0 Procure to Pay
14.0 Manage Financing Services
. uppor
15.0 Deliver Services
E n a
b l i n g
( E n a
b l e s
C l i e n
t F a c
i n g
)
activitiesCommon processes arelogically grouped anddisplayed once with a singleprocess owner, but can beused by many business areas
Enable organization tounderstand inner workingsfrom a horizontal processviewpoint, rather than avertical functional organizationpoint of view.
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Foundational Methods and Tools
-------------------------------------------- Transformation Continuum ---------------------------------------
Develop business visionand mission
Establish processmanagement system
Select projects, applymethods and tools
Monitor and manageprocess performance
Strategize Govern SustainImprove
Define strategic processcapabilities, roadmapplans and objectives
Process ownershipMeasurement system, KPIsTrack performanceRecognize opportunities
Select and perform projectsDeliver business capabilitiesHarvest assets for standardreuse
Adopt changesOptimize execution
Achieve objectives
IBM transformation professionals leverage six foundationalmethods and tools for internal business process simplification
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Business Process Management
Social Business Transformation
Business Analytics
Better Change
Lean Six Sigma
Additional Methods and ToolsMethods and tools are primarily associated by phase, but can add value across the continuum
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Our scenario-based Toolkit guides practitioners to methods andtools for solving common business challenges, e.g.,
Recommended Project Steps
1.1 What are the key processperformance measures? Are reliablemeasurement systems in place?
Enterprise Process Framework Business Process Manager
Example link tothe Business Architecture
method
Toolkit for Process Transformation: Business Scenario 1 Guidance
Example links tothe Lean Six
Improve the end-to-end productivity (cycle-time, cost, quality) of a majorbusiness process by at least 50% to meet committed goals
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1.2 How do these measures relate tothe customer, end-user, and businesscritical requirements?
Voice of the Customer Key Performance Indicators Organization Change Plan
1.3 What are the current performanceresults, including variability across anydifferent process versions by location
or organization)? What gaps existamong current, forecasted andrequired process performance?
Lean Six Sigma measurements Business Structure Modeling SPSS predictive analysis
1.4 Have process activities beendocumented as they are actuallyperformed? Which of these activities
add customer value? Are there workelimination plans for those that dont?
SIPOC Blueworks Live Value Stream Mapping Business Process Manager
Example link tothe Better
Change method
Example linkto a Business Analytics tool
Example link toa Software tool
Sigma method
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Business Process Management (BPM) Building Blocks...empoweringbusiness and ITusers to easilymanage change...
Business rules and analyticsprovide flexibility for repeatabledecisions that change frequently
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Flexible integration
interconnects applications andservices across the organization
Processes can mix structuredand unstructured activities,according to business needs
MDM
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Business OutcomesBusiness Outcomes
Here are several recent examples of BPM/BMRSdeployments delivering Smarter, more agile processes
Mid-Market Deal Registration Deliver PTI improvement by reducing dealregistration cycle time with rules-based work-flow automation.
Supply Chain Alerts Over $2M annual savings for timely notifications whensupply chain disruptions occur.
Cross-brand Pricing Estimator Reduce pricing proposal implementationfrom 14 to 1-4 days and deployment to new countries in days versus weeks.
GTS Cloud Sales Enablement Integrated work-flow, rules and monitoring toreduce partner register to welcome kit cycle-time from days to hours.
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AchievedAchieved eograp y oca on o e ss gnmen - na e reps o up a erules (direct) for geography location code assignments, reducing cycle time
from several weeks to just a week for more than 50 countries.
Maintenance Technical Services Increased IBM Client satisfaction throughproactive notification of exposures in clients IT inventory by applying rules
derived via analytics. Delivered for IBM Client, Kaiser.
Infrastructure Optimization Reduced cycle time by 75% to complete theanalysis required to migrate from Physical servers to Virtual servers. Proof-of-
value delivered.
Business Agility Enablement Cloud - Application teams rapidly acquireshared instances of BPM and Decision Management software in minutes to
implement solutions that achieve business agility.
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Deal Registration Business Partner Pain-points
Manual process using spreadsheets
No on-line request status
Cycle-time too long
Goal: 84% improvement in end-to-endcycle-time to register deals
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A global cross-brand simplified andenabled Deal Registration process
Initiate with key brand to reduce cycle-
time from 152 hours to
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BPM technology provides the capabilities needed to automatethe Deal Registration process
Collaborative processdiscovery and definitionin BlueworksLive
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Automation andenablement of solutio n
workflow in BPM andbusiness rules in ODM
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Smarter Transformation Intiatives by Process
IBM Enterprise Process Owners are leveraging Smarter roadmapsto help guide and deliver desired process improvementsSmarter Enterprise Transformation Portfolio Smarter transformation initiatives by process Aligned to Client experience, employee experience, and shareholder value Select high-impact initiatives that enable tactical or strategic Smarter enterprise plans
BPM, analytics, social are strategic capabilities for enabling targeted IBM businessoutcomes
interconnected intelligent
instrumented
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I2MMktg
O2OClient Rel.
ChannelsO2C
P2PSupport
HRFIN
BT/ITBus Supt
IGFDel Svcs
010
SmarterPortfolio # ofInitiatives Smarter
PortfolioValue byProcess
ClientExperience
EmployeeExperience
ShareholderValue
Smarter Portfolio Roadmaps by Process
Marketing
BusinessSupport& Web
BT/IT
O2O
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Business Drivers for Packaged Applications
ReduceCustomCoding
and related costs
Flexibility
ApplicationConfiguration
ImprovedSystem-LevelCollaboration
SOA and ApplicationIntegration
ActiveBusiness
PerformanceOptimization
Orchestration andInline AutomatedDecision Making
1980s 1990s 2000 - present FORWARD!
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How SAP Processes Are Implemented Today
Most SAPimplementationsrely on staticdocumentationto implement
processes andmay not reflect theprocesses actually
much
customizationis often required
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A documentation-centric approachto SAP needs
humancompliancewith processdocumentation
making itdifficult tomigrate to
future releases
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SAP Process Optimization Gaps
Understand howSAP processes areimplemented today
Use real-timeanalytics to driveimmediate businessresponse to threatsand opportunities
FlexibilityVisibility
Simplify processdesign and change
Standardize coreprocess elements
Match processvariants to specificbusinessperformancerequirements
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Agility Control
Enhance andchange processesand business policyat the speeddemanded by thebusiness
Enable business-led change
Reroute work andtailor runningprocesses toreduce bottlenecks
Optimize businessoutcomes based ondynamic businessconditions
Know the status of key processes? Get real-time visibility into
bottlenecks?
Effectively reroute work to lessexperienced workers?
How canthe average
SAPcustomer:
Know which process changes aremost likely to help?
Quickly rollout process changes?
Quickly integrate new process workers into your business?
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Unlike Other BPM Platforms, With IBM BPM 8.0
The picture IS your SAP process
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All in one tool analysis through execution through improvement
Analyze. Define. Execute. Monitor. Improve.
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Reduce blueprintingtime, cost and risk
Improve processreliability, flexibility,visibility and control
Improve process efficiencyand reduce business
complexity
Innovation
IterativeBusinessBlueprinting
ProcessIntegration andOrchestration
Process Automation
ProcessDiscovery andMonitoring
Decision Automation
GuidedWorkflow
Mine SAPBusiness Eventsto discover actualprocesses and act
Use an iterative,experiential-basedapproach toaccelerate
Interactively guideend users throughSAP screens toimprove productivity,
Optimize processsteps to improvecycle time,manageability and
Dramaticallyreduce the cycletime of high volumeprocesses by
Automatecomplexdecision makingto reduce
Transformation
Core IBM BPM for SAPCapabilities
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Apply the right mix of process innovation capabilities based on: Process characteristics The level of optimization desired Current process innovation maturity
Business Optimization Potential
in real time to
businesschallenges
traditional SAP
blueprinting withSAP SolutionManager
visibility and
consistency
visibility of key
processes
reducing/removing
human interaction
bottlenecks and
improvebusinessoutcomes