success factors and new perspectives of bpm to enable scale

www.komus.de

Struktur Technologie Mensch Prof. Dr. Ayelt Komus

Success Factors And New Perspectives

Of BPM To Enable Scale

Process Summit Q4, 2012 Leading Processes to Enable Scale

October, 23rd, Wiesloch - Germany

Prof. Dr. Ayelt Komus BPM–Laboratory

University of Applied Sciences Koblenz www.komus.de

[email protected] www.twitter.com/AyeltKomus

2 www.komus.de © Ayelt Komus @AyeltKomus

Telegraphy

http://commons.wikimedia.org/wiki/File:Nokia_evolucion_tama%C3%B1o.jpg


Telex

http://commons.wikimedia.org/wiki/File:Fornebu_telex_central.jpg


Fax Machine

http://commons.wikimedia.org/wiki/File:Fax-amarys.jpg


Mobile Phones (Nokia)

http://commons.wikimedia.org/wiki/File:Nokia_evolucion_tama%C3%B1o.jpg


Long-Term Technology

© pio3 - Fotolia.com


Long-Term Asset: Business Process Management

Department A

Department B

Department C

Department D

Top Management

Product 1

Product 2

Product 3


Long-Term Asset: Business Process Management

Department A

Department B

Department C

Department D

Top Management

Product 1

Product 2

Product 3

You can not not manage processes!

Good BPM is a sustainable business advantage!


How successful was your company compared to other companies in the industry?

82% ‘know’ or ‘believe’ their EBIT-margin is above industry average

0% 0% 0%

24%

35%

41%

0% 5%

10% 15% 20% 25% 30% 35% 40% 45%

BPM And Business-Success Go Hand-In-Hand

Source: BPM Best Practice-Study – Prof. Komus – FH Koblenz


BPM-Survey: Managed BPM And Profit Margin

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

bis 2% 2-4% 4-6% 6-8% 8-10% 10-20%

20-30%

30-40%

40-50%

über 50%

Perc

enta

ge o

f Com

pani

es

Profit Margin

"Gezieltes BPM"'"Kein gezieltes BPM"

Source: BPM-Survey, Prof. Komus – FH Koblenz

Median

Managed BPM No managed BPM-Activities

Higher profit margin with managed BPM (Median 6-8% vs. 4-6%)


BPM + 6 Sigma: BPM And Profit Margin

Higher Profit Margins For BPM-Companies

Source BPM + Six Sigma study, FH Koblenz


How successful do you consider your company to be looking back at the last 3 years?

Company’s Success

2%

1%

6%

44%

38%

7%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

unbekannt - keine Meinung

deutlich weniger erfolgreich als andereUnternehmen der Branche

weniger erfolgreich als andere Unternehmender Branche

ähnlich erfolgreich wie andere Unternehmender Branche

erfolgreicher als andere Unternehmer derBranche

deutlich erfolgreicher als andere Unternehmender Branche

n=81

89% of BPM-study-participants are at least as successful as other companies in same industry

Quelle: Studie Qualität im BPM – www.q-in-bpm.info

much more successful

more successful

about as successful as other companies in industry

less successful

significantly less successful

uncertain – no opinion


www.

Status-Quo- Chemie- Pharma

.de

BPM-Laboratory

BPM Laboratory

www.

BPM6Sigma. de

Combination of BPM

with other methods

(esp. 6Sigma)

www.

IT-Radar .info

Today’s and future

topics In BPM and

ERP

BPM- Survey

BPM in SME

and large

enterprise

www.

Q-in-BPM .info

Quality. in BPM

BPM: Business Process Management ** www.bpmerp.de *** Worskhops/Trainings

www.

Status- Quo- Agile

.de

www.

BPM-ERP- Update

.de Praxis- forum

BPM&ERP**

BPM- Best

Practice Expert

Interviews with BPM-

Best Practice Companies

BPM-Umfrage (Studie) BPM-Check (Interactive Maturity Model) Empirical Studies

Practical Experience BPM-Expertise


Books

What are the success factors of

Wikipedia and other to learn from in the

field of BPM? How to use

Social Media in the organization?

What does the BPM of BPM-Best-

Practice-Companies look like?

BPM-Success Factors of Deutsche Bank, Miles & More, Bayer, Generali and

many other

Other Publiactions: www.komus.de/publikation


* Segmentation based on number of employees and turnover; difference to 100% due to rounding errors

BPM Best Practice-Study

Participants: Bayer HealthCare AG, Cosmos Direkt, Deutsche Bank AG,

DZ Bank AG, E.ON Energie AG, EDEKA Minden-HannoverIT-/ logistic service GmbH, EnBW Energie Baden-Württemberg AG, Finanz Informatik Technologie Service GmbH & Co. KG, Generali Deutschland Holding AG, Lufthansa Miles & More, Nordenia Deutschland Gronau GmbH, Paul Hartmann AG, Siemens AG, Siemens Healthcare, VIS Informatik GmbH (Generali Wien), Volkswagen AG, Watt Deutschland GmbH

Distribution by size*

• 63% – very large-scale enterprise (7 DAX-Companies) • 25% – large-scale enterprise (GU), • 13% – midsize companies (MU)


Success Factors

New Perspectives

To Enable Scale

Success Factors And New Perspectives To Enable Scale


4 Areas Of Successful BPM-Systems

Strategy

Structure Technology

People


Areas Of Successful BPM-Systems

Strategy


People


BPM-Strategy-Alignment

82% BPM Best Practice-Companies align their BPM to Business Unit- or Company-Strategy

Only 18% “systematic documented process” 65% “implicit process”

Quelle Bild: http://commons.wikimedia.org/wiki/File:NonSynchronousGearBoxSF.jpg

Best Practice BPM–Leaders have a very good understanding

of business needs and goals.



Immediate Value- In Short Term! ©

olly

- Fo

tolia

.com

© olly - Fotolia.com



Strategy


People


Linking IT-Systems And Models

only 41% realized links between business models and IT-models only 25% realized links between IT-systems in production and business models BUT: 71%: development of IT-applications based on process-oriented methods

connection between

IT-systems and models is surprisingly poor

“Round-Trip” is not

very common yet. Exception: BPMS But more often than not BPMS-round-trips are not connected to “true” business modelling-world

Gartner‘s Businness Process Improvement Cycle



From Business To Technical Perspective Of Modelling

TIME

First workshop Before technical implementation

Diagrams: courtesy of Siemens


The Beauty Of Models

© Anna Khomulo - Fotolia.com


The Beauty Of Models

© Anna Khomulo - Fotolia.com

All Models Are Wrong

“Essentially, all models are wrong, but some are useful.”

George E. P. Box:

http

://en

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iped

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Long-term-thinking is crucial! Who will maintain the process-model?



Strategy


People


Process Managers

PMs are widespread (82%)

PMs with full line management competencies concerning employees in relevant processes only 12%

Pragmatic approach of combining process approach with existing managerial structures

0%

10%

20%

30%

40%

50%

60%

12%

59%

12%

0%

18%



BPM Center Of Excellence

BPM Center of Excellence in almost all Best Practice-Companies

No line management structure between Center of Excellence and process managers

Typical Tasks Definition of standards Centralized services Quality Management and Quality Assurance Responsible for Technical BPM-Infrastructure

Quelle Bild: ttp://commons.wikimedia.org/wiki/File:Heliocentric_solar_system.png

Source: BPM Best Practice-Study – Prof. Komus – HS Koblenz


The Big Divide: Technical And Business BPM

© eurobanks - Fotolia.com



Strategy


People


It’s The People, Stupid!


Defined Standards And Reality


Documented Real Life

InformSales

SE CaptureOrder

Routenot

investigated

New quoterequestfrom PM

New quoterequest fromcustomer

Requirementgeneratedas result of

capacityLinks PM Plans

Customer Requirements& SE Capture Order

Responsefiled

Dead end

CRF completedand

Links SE CaptureOrder & Issuer

Enter Order

IssuerEnter Order

Validation jobgenerated onCMC queue

Links Issuer EnterOrder & JC Order

Validation

Pass Missinginformationto Issuer

Links SE Resolves& Issuer Enters Order

NJRA closed

Links Issuer EntersOrder & NTE Task

Missinginformation

request (Issuer)

Links Issuer EnterOrder & SEResolves

601 task toWideband

planner

Links Issuer EnterOrder & Search

for Y Code

JC order

Missinginformation

request (JC)

Links chase missinginfo & order validation

Missinginformation

received (JC)

Links Issuer chasemissing info & JCOrder Validation

Links JC OrderValidation & NTE

allocation

NJRAclosed

Re-Issue601 Taskto WBP

Links JC OrderValidation &

Search for Y Code

NTE Tasks(129/532)

London/Glasgow

Y CodeSearchSlough/London

Input from Account Team

Receivecustomer

plans

Decide no neworders required

Dead end

Decide to placeorder with

tactical planner

Links PM plansCustomer Reqs &Tactical Planning

SEResolves

PM PlansCustomer

Requirements

Links Search for YCode & Q Mgr

selects NTE TaskA29/O532/O530

New job inqueue

Links Search for YCode & NTE Task

New Job inqueue

Links Issuer chasemissing info &

WBP Site Survey

Missinginfo received

WBPSite Survey

SE referCosting toCustomer

Issue RFsGlasgow/London

JC Respondto CREP

Links refer costingto customer &cancel order

Order

Customerconfirm

information toWideband

Links SE refercostings to customer& WBP Site Survey

Link to internal/external workgroups - not

modelled

Info sent tointernal/external

workpacks

Links WBP SiteSurvey & SE Refer

Costing toCustomer

Ancillary costinfo to SE

Links WBP SiteSurvey & Issue

RF's & JC Respondto CREP

154 atCOM

Job delayed

Links WBP Site Survey& JC Analyse Delay

Cancelorder

End

Ready toCREP

Links NSDRoute/Assign& JC Respond

to CREP

Task called toissuer

Issuer choosesto ignore so not

modelled

Links JC respondsto CREP & Issue

RF's Glasgow

CREPcomplete

NSD Route

JC AnalyseDelay

Allocate CoWLondon /Sheffield

SE AnalyseDelay

Route not investigated

Delay enquiryfrom customer

Links SE analyse delay& JC analyse delay

Progressrequestto JC(SE)

Ready forinstallation

Links Allocate COW &COW supervise external works

Links JC analysedelay & SEresponds toCustomer

Progress updateto SE

SE respondto Customer

Dead end

Links JC analysedelay & WBP

601 Task

INAC tasklive

Dead end - routenot investigated

Progress infopassed to WBP


Progress infopassed to NSD


Progress infopassed to PM


Progress infopassed to CSM

Supervise

Equipmentnot delivered

Not Modelled at Present- Non Fluid Process

Schemeinstalled &

commisioned

Links Supervise External /Contractor& Integrate Schemes

IntegrateSchemes

Input not Modelled

Incomingcall from field

engineer

CONFLive

Links Integrate Schemes& Configure Circuit/Resolve Problems

Link notModelled/investigated

Schemereferred to

NSD

Schemereferred to

CSP

Integrate scheme andTactical planning eEPCs

Configure CircuitResolve

Problems

WNEXlive after

WNEX task is triggered byCOSMOSS, once all othertasks have been completed

End ofProcess

TacticalPlanning

Links Supervise contract& Tactical Planning

RFs sent toCSP Contracts

RF's sent forFinancial

authorisation

Out of Scope - not Modelled

Supervise

Links DetailedPlanning

& Supervise Contract

DL proact jobon queue

Ready forinstallation

Links Supervise Contract& COW supervise

External Works

DetailedPlanning

Proact jobcomplete Not modelled

Links toExternal Works

carrying out DL works

PM reportsProject Status

IM FacilitiesDecisions

Capacityproblemraised

Links Supervise External Works/Contractor& IM facilities decisions

Requiresfurther

Investigation

IM Plan Sitesfor Capacity

Issuer chasesmissing info

Links WBP Site Survey &Issuer chase missing Info

Missinginformation

request (WBP)

Route, Assign& config 2Mbit

Circuits

SolutionPlanning

Budget

Links NTE Tasks (No Y Code)& JC Analyse Delay

Order in JobController's

Queue (Link)

NSD Q Managerchase missinginfo/clean data

Glasgow

Links WBP Site Survey& NSD Job Selection & Clean

010/O534live (Link)

Job assignedto NSD (Link)

Links NSD Job Selection/Clean& NSD Route /Assign

Links Route/Assign& JC Analyse delay

INJCin JCs

queue (Link)

Relevant NSDinformed of newproj order (Link)

Links Queue Manager selects NTE& Route/Assign Glasgow

154 Tasklive (Link)

Links NTE Tasks& WBP Site Survey

Links Issue RF Glasgow& Allocate COW

198/O912complete

Links WBP Site Survey& Issue RF's Glasgow

SDH2C formsent to NSD

(Link)

Account Teaminforms

Manager ofmajor project

Customerrequest (major

project)

Managerinformed

of major projectfrom other

SDH PMnot required

(End)

Missinginformation

passed to NSD(End)

Route not investigated

JC amend CDD

Feed into COSMOSSstatistics - Dead end

CDDamended

CDD can't

Feed into COSMOSSstatistics - dead end

INJCin JCs

queue (Link)

Links NSD Job selection/Clean& JC Analyse delay

Links Issuer chase missing info& WBP Site survey &WI

Missinginformationnot available

(WBP)

RF prepared(Link)

Links Issue RF's& Route & Assign

Job returnedto queue man

(Link)

Links Route/Assign& Queue Manager Chases missing details

Requiresfurther

Investigation

Requiresfurther

Investigation

Requiresfurther

Investigation

Form sent from Oswestry Capacity Managment

SDH23received

R&A taskcom'd

Link to COSMOSSglue and Config circuit

Other outputtbc

Slide courtesy of British Telecommunications plc

As-Documented Versus As-Is


BPM Training

12%

29%

41%

18%

0%

5% 10% 15% 20% 25% 30%

35% 40% 45%


Relevance of training is well understood among BPM Best Practice Companies


Culture Of Change

18% 18%

65%

0%

10%

20%

30%

40%

50%

60%

70%

2 / 3 of Best Practice Companies understand change as an accepted part of their corporate culture




Process Ownership Center of Excellence

BPM-Success Factors

Strategy

Alignment with Business Value Success-Stories

Value-driven Loose

Coupling

Know-why Training Culture

People


Very Often Simple Things Make The Difference

Life Expectancy 1900: ~ 45 years – today: almost 80 years

Prof. Dr. med. Martin Exner, Institut für Hygiene und Öffentliche Gesundheit http://www.ihph.de/publikationen/Hygiene_oeffentlGesundhei.pdf, abg. 11.6.2012 http://commons.wikimedia.org/wiki/File:Operation_Medizin.jpg http://upload.wikimedia.org/wikipedia/commons/1/1b/OCD_handwash.jpg

Healing Medicine Hygiene and Public Health

5 years 30 years


Success Factors

New Perspectives

To Enable Scale



New Perspectives

Loose Coupling

Social Media

Agile



Loose Coupling – Learn From Construction Industry

http://upload.wikimedia.org/wikipedia/commons/2/2e/Lager_01_KMJ.jpg

Roller Bearing

http

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Expansion Joints

41 www.komus.de © Ayelt Komus @AyeltKomus Based on Allweyer in Komus (Editor): BPM Best Practice, Springer-Verlag 2011

Computation Independent Model (CIM)

Platform Independent Model (PIM)

Platform Specific Model (PSM)

Layers Of Models – Technology BPM

Technology BPM





Layers Of Models In BPM (Technology And Business)

High Level Process Models

Business Process Landscape

Technology BPM

Business BPM





Loose Coupling Of Models

High Level Process Models

Business Process Landscape



How To Put Loose Coupling Into Practice


Flexible Pointers (i.e. Wikis)

Social Links

Culture

Organisational Structure

Shared Process Oriented Goals (IT and PM)

Avoid Overengineering and Rigid Structures

* Process Manager


New Perspectives

Loose Coupling

Social Media

Agile



Availabilty Of Models And Grass-Root-Modeling

84%: Models are available for all employees and easy to read BUT: Development of models only together with specialists Process Models are not commonly used to support day-to-day-

work

Bottom-Up-Models stay in the desk drawer and have almost no connection to the ‘official’ process world


Example: Open Processes – Deutsche Telekom

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BPM is NOT just producing lots of process-models!

Social Media – Tools and Methods – is key to involve staff involved in processes


New Perspectives

Loose Coupling

Social Media

Agile



3 things we wish were true… The customer knows what he wants The team knows how to build it Nothing will change along the way

3 Things….

3 things we have to live with…

The customer discovers what he wants The team discovers how to build it Many things change along the way

Based on Henrik Kniberg

http://commons.wikimedia.org/wiki/File:Change.jpg?uselang=de


Sucessful Scrum – Not Limited To IT-Development!

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56% Overall Improvement In Designing Mechanism Parts

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Key Performance Indicator – Self Assessment of Team-Performance


Success Factors

New Perspectives

To Enable Scale




Process Ownership Center of Excellence

BPM-Success Factors

Strategy

Alignment with Business Value Success-Stories

Value-driven Loose

Coupling

Know-why Training Culture

People


Loose Coupling

Social Media

Agile

New Perspectives


BPMS The Linking Pin To The Long Tail

Number of processes in certain period

Processes in order of frequency (highest left – lowest right)

‘classical’ Business IS

BPM Suites

Groupware/ CSCW*

* CSCW – Computer Supported Collaborative Work

Idea: Scherer, Siemens AG

© Prof. Dr. Ayelt Komus – FH Koblenz


New Possibilities With More Powerful BPMS-Technology

Number of processes in certain period

Processes in order of frequency (highest left – lowest right)

BPM Systems

Groupware/ CSCW*

* CSCW – Computer Supported Collaborative Work © Prof. Dr. Ayelt Komus – FH Koblenz

‚classical‘ Business IS


Automated Processes

source: http://news.bbc.co.uk/2/hi/uk_news/wales/7702913.stm

“I am not in the office at the moment. Send any work to be translated”


Questions?

www.komus.de www.bpmerp.de

www.it-radar.info www.bpm-erp-update.de

You‘ll Find Many Of My Presentations on www.komus.de/vortrag

Thank You For Your Attention


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