Business Operating System - Sytyke ry · DIGITAL BUSINESS TECHNOLOGY PLATFORM THE BEST VALUE IN THE...

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© QPR Software Miika Nurminen, SVP Business Operating System

Transcript of Business Operating System - Sytyke ry · DIGITAL BUSINESS TECHNOLOGY PLATFORM THE BEST VALUE IN THE...

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Miika Nurminen, SVP

Business Operating System

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Digital business transformation creates increasing need for processre-design, change implemention and co-ordination of multipleinterdependences.

Operative indicators are needed to track change implementationand customer experience. These indicators can be used to continuous improvement even after the change is completed.

Operative indicators are taken from the event data of information systems. Event data provides visibility to any part of business models.

Without this visibility the risk of failure grows in rapidly changing digital business.

There is a growing need to connect design to reality

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In Research

Gartner’s Business Operating System

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Artificial intelligence, machine learning, and smart things promise an intelligent future.

AI and machine learning increasingly willbe embedded into everyday things. Thisphenomenon is closely aligned with theemergence of conversational systems,the expansion of the IoT into a digitalmesh and the trend toward digital twins.

Gartner’s Top 10 Strategic Technology Trends for 2017

http://www.gartner.com/smarterwithgartner/gartners-top-10-technology-trends-2017

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A BOS Is Like a Digital Twin to Enable Your Organization to Adapt

Business Operating System

https://www.gartner.com/doc/3761664/create-digital-twin-organization-optimize

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Like an in-vehicle navigation system, it will guide your organization to its desired destination using five basic elements

A BOS Can Act as Your Organization's Navigation System

Step No. 1 Destination

• Enter Your Destination Into the BOS

Step No. 2 Map

• Use a Business Operating Model to Map Your Transformation Journey

Step No. 3 Performance

• Measure Your Performance

Step No. 4 Situation

• Create Situational Awareness

Step No. 5 Decision

• Make Informed Decisions

https://www.gartner.com/doc/3761664/create-digital-twin-organization-optimize

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The Technology Components of a Business Operating System

https://www.gartner.com/doc/3761664/create-digital-twin-organization-optimize

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In Practice

Business Operating System

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Business process and portfolio management process

Process Execution

3. Execute

4. Monitor

Execute business, monitor performance,

analyse and optimize execution

Process manager

Process Development

2. Design 1. Define

5. Optimize

(continuous)

Define requirements, design processes,

continuous improvements

Process owner

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ToolsContinual Improvement Methodology

•Strategy & Business Models

Business Design

•Capabilities & Operating Models

Operations Design

•As-is Processes & Root Causes

ProcessMining

•Solution Architectures & Work Packages

Solution Design

•DevelopmentRoadmaps & KPIs

Performance Management

Enterprise Architecture / Enterprise Business Process Analysis

• Design your digital strategy & “To-be” transformation

Process Mining / Process Intelligence

• Data-driven analysis & measurement of “As-is” processes

Corporate Performance Management

• Performance management and strategy execution automation

• Collaboration and reporting

• Mobile access to performance data and analytics

Operational Development Model

Why? What?

How?

Identifying the Truth

Overcoming Challenges

Monitoring & Reporting ProgressD

esig

n-to

-pra

ctic

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Impro

vem

ent

ideas &

incre

ments

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Vision: To be the best value creat or in xxx by 2020 through yyy and zzz.

DIGITAL BUSINESS TECHNOLOGY PLATFORM

THE BEST VALUE

IN THE INDUSTRY

FOR CUSTOMERS,

SHAREHOLDERS

AND EMPLOYEES

STRATEGIC GOAL #1 STRATEGIC GOAL #2 STRATEGIC GOAL #3 STRATEGIC GOAL #N

OPERATIONS

Support of operations and LEAN EA based operations development

Evaluate business model

Crystallize strategy

Redesign operating model

Manage development

roadmap

1. Why 2. What

Strategic goals

3. How4. When & who

Business outcomes Development needs

Solution blueprints

CapabilitiesPeople

Processes

IT

Strategy-driven Operational Development

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Operating Model Analysis with Process Mining

Business Process Improvement is the key for process

success

TraditionalInterviews and workshops

SubjectiveTime consuming and expensive

Vulnerable to human interpretation

Process miningFact based

Fast and efficientDetailed and fair

Besides flowcharts delivers also the process metrics

Optimal results are achieved by combining the methods

The idea: Turn transactional data into visual Process

Intelligence

Flowcharts, Influence Analysis, Profiling, Process KPIs, Case Attributes, Flow Duration analysis

CRM

BPM

CMS

ERP

Benchmarking the process based on any dimension. Recycled metal orders

have a double amount of order changes which leads to 5 times more

product returns than the other purchasing units have.

Moreover, it is valuable to understand, how these outlier orders differ from the

quick orders. Red boxes: there are more order changes and other failures.

Cont. What is the root-cause for the process issues? Metadata has an answer for this

behavior. The red lines at the heat map explain the outlier orders based on the data

dimensions. It is clear that especially Recycled metal purchasing unit is failing which

leads to stock-out.

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Solution Design with Enterprise Architecture

QPR Operational Development Model

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QPR EnterpriseArchitect & QPR ODM Template

Solution Design in Practise

Crystallize strategy

Evaluate business model

4. Manage development roadmap

Strategy-driven Operational Development Methodology

Redesign operating model

CapabilitiesPeople

Processes

IT

Why

How

What

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Performance Management

QPR Operational Development Model

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Monitoring the continuous improvement actions with dashboards. It is important to have the visibility, how effectively the development actions are leading to the wantedoutcomes.

Understand, Harmonize, and Automate

Understand

Harmonize

Automate

Identify problems using predictive analytics for on-

going cases based on information gained from

other dataUse on-going data for determining Process KPIs

and monitoring the performance in order to

prevent unwanted process deviationsExisting data used for

identifying process exceptions and seeking out

root causes for reducing process waste

Business Value

Complexity

Past Data

Present Data

Future Data

Clear business benefits

Number of invoice corrections

decreased by

80%

Business critical order changes

reduced by

50%

Lead time from delivery to invoice

decreased by

55%

Savings in inventory levels

>€1m

Working capital released by

€100m

Transportation blocks causing late delivery

reduced by

50%

Delivery accuracy improved from

65%80%

Value of uninvoicedorder lines discovered

€17m

Increased delivery accuracy and internal efficiency, leading to

increased sales by

20%

HIGHER INTERNAL EFFICIENCY

BETTER DELIVERY ACCURACY INCREASED SALES

Founded

1991

Corporate headquarters

Helsinki, Finland

Stock symbol

QPR1V: Nasdaq Helsinki

Sold licenses

>1 million worldwide

Customers

2000+

Industry recognitions

Gartner, Ventana Research, Palladium,

Forrester Research

Products

QPR Metrics

QPR ProcessDesigner

QPR ProcessAnalyzer

QPR EnterpriseArchitect