www.ids-scheer.com
Enterprise BPM framework
IDS Scheer Nederland
Frank Luyckx, Enterprise BPM solution champ
Agenda
ARIS BPM framework
Enterprise BPM framework
22
11
ROI BPM framework33
© IDS Scheer AG www.ids-scheer.com
© IDS Scheer AG www.ids-scheer.com
An organization should be a school of fish
To survive they have to react to changes quickly
© IDS Scheer AG www.ids-scheer.com
To survive they have to react to changes quickly
Gartner :
BPM is a structured approach employing methods, pol icies, metrics, management practices and software tools to measure, synchronize and continuously optimize the organization's activities a nd processes."
"BPM governance is a management practice that provides for governance of a business's process environment toward the goal of improving agility and operational performance and revenue.
Misalignment ….
• Personal agendas• Politicking• No agreed routemap
• No consistent measures
TQM
ContinuousImprovement
CustomerFocus
Productivity
Empowerment
Too manyindependent initiatives
Just in time reskilling
sales forceeffectivenesssales force
effectiveness
EDI
No Clear Leadership
Disillusioned Management
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• No consistent measures • No stretch targets• Shop floor disengaged
Business
4 Driving forces within an organisation
How can I manage my business results
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OrganizationProcess
How can I manage my business processes
How can I managemy organisation
How can I control my business results
4 Phases of the Process Life Cycle Management
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Strategy = Company Objectives & Business strategy
Design = Functional design & Business analysis
Implement = Solution development & Deployment prepar ation
Controlling = Operational environment & Daily Mainte nance
IDS Business Process Maturity framework to reach Bu siness agility
Strategy Design Implementation Controlling
Business Transformation Management Business Communications ManagementBusiness Strategy Business Management
BPM Configuration Management BPM Support ManagementBPM Program Management BPM Design
We want a new printer in the home market segment
What are the specifications and logistical requirements ?
How should I change the distribution centers and logistical concepts?
Where can I find information of the new printer and my new responsibilities ?
BusinessManagement
© IDS Scheer AG www.ids-scheer.com
BPM Change management BPM GovernanceBPM Change Program BPM Organizational Design
BPM Knowledge Management BPM Objectives ManagementBPM Financial Management BPM Quality Management
What are the objectives for the organisation ?
How should I design the new organisation?
Does the organisation accept the new organisation structure ?
How can I manage the organisational standards and responsibilities
What processes & projects do I require ?
How should the process design look like ?
How should I confige the ICT applications and processes ?
How can I daily support the ICT applications and processes ?
What is the ROI and process cost of this new printer ?
How can I improve the printers and logistical infrastructure?
Does everybody understand the printer, applications & processes ?
Does the new printer and BPM reaches the objectives ?
ProcessManagement
OrganisationManagement
ManagementControl
BPM stakeholders
BPM BPM ImplemImplemBPM DesignBPM DesignBPM StrategyBPM Strategy BPM ControlBPM ControlJurgen Jurgen SattlerSattlerCEOCEO
Frank Frank VolmerVolmer
Paul BijsterPaul BijsterBusiness DevelopmentManager
Steve Steve MCALLISTERMCALLISTERBusiness Planner
Johanna Johanna FeldmanFeldmanIT
Gunnar Gunnar OLSSONOLSSONIT System
Carl BRAUNCarl BRAUNHead of Service Center
Robert Robert THOMSONTHOMSONBusiness
BusinessManagement
Process
© IDS Scheer AG www.ids-scheer.com
VolmerVolmerOperations Operations Manager
Claus Claus PettersonPettersonHRM manager
Monika Monika BAUDISCHBAUDISCHFinancial services
Peter Peter SONNTAGSONNTAGGlobal BusinessOwner
Peter Peter MAYMAYBusiness Process Analyst
IT Architect
Etienne Etienne DUCRETDUCRETKnowledgeManager
Linda Linda ROSENFELDROSENFELDOrganisational Change Manager
Marcus Marcus ANDERSENANDERSENProject Manager, Operational Excellence
Wolfgang Wolfgang BECKERBECKERHead of BPMOrganization
IT System SupportManager
BusinessArchitect
ProcessManagement
OrganisationManagement
ManagementControl
Strategy Design Implementation Controlling
Business Transformation Communications ManagementBusiness Strategy Business Management
BPM Configuration Management BPM Support ManagementBPM Program Management BPM Design
BPM project portfolio Corporate process model BPM execution platform BPM system support
Business analysis
Balanced score Card
Products & services analysis
Bus requirements mngmt
Transformation management
Continious improvements
Communication platform
Information management
BusinessManagement
Process
BPM Governance Framework with BPM projects
© IDS Scheer AG www.ids-scheer.com
BPM Change management BPM GovernanceBPM Change Program BPM Organizational Design
BPM Knowledge Management BPM Objectives ManagementBPM Financial Management BPM Quality Management
BPM stakeholders objectives
HRM organisational analysis
BPM organisation design
BPM process owners
BPM change management
Authorization concept
BPM standards & methods
BPM escalation management
BPM project standards
Corporate process model
BPM architecture
BPM execution platform
Documentation & testing BPM impact analysis
Process costing analysis
BPM ROI calculation
Six sigma projects
BPM quality analysis
BPM content management
BPM training management
BPM objectives analysis
BPM SLA management
ProcessManagement
OrganisationManagement
ManagementControl
A higher BPM maturity level generates benefits for the organisation
Alignment ,HarmonisationRationalisation of:
Products, Processes, Policies, ProjectsPlatforms, Procedures,
© IDS Scheer AG www.ids-scheer.com
As each bird flaps its wings it creates an
uplift for the bird following. By flying in a
V formation the whole flock adds 71% of
the flying range than if each bird were to
fly alone.
Procedures, Planning, Power, Performance, Politics, …… People
BPM Maturity Levels to measure alignment (CMMI, OMG )
Integrated E2E processesand E2E process organization across the 5 BPM domains
E2E process analysisof both the E2E processes and products
Networked E2E processeswith business partners
Strategical market agilityand proactive improvements enabled by piloting innovativenew ideas and technologies
3 Standardized
4 Predictable
BPM domain integration requires discipline by the complete organization
Success depends on BPM
Build a trusted relationship with your business partners ( suppliers and customers )
5 Optimizing
© IDS Scheer AG www.ids-scheer.com
Individual process flows .Few activities are described.
Individual planningmotivation, efforts and heroics
Unit process disciplineis in place to repeat processesand reduce rework.
Basic project managementto track costs, schedule and functionality.
Corporate E2E processesare standardized by an accepted methodology.
BPM Competence Centermonitors BPM projects - BPM tools - E2E process standards
and products
1 Initial
2 Managed
Success depends on employee competencies
Success depends on
management competencies
Success depends on BPM competencies
Concepts IDS BPM Maturity Model
Maturity levels describes the levels that an organization
moves through as it evolves from an immature
organization without any process discipline to a mature
organization where all processes are measured,
managed and consistently improved.
5 Maturity levels
Initial processes Managed processes Standard processe s Predictable processes Optimizing processes
BPM Tools can support an organization
to reach a higher BPM maturity level
© IDS Scheer AG www.ids-scheer.com
A BPM Process area
describes a cluster of related
BPM processes within the
organization.
16 BPM
Process Area’s
BPM Maturity Index
BPM Maturity Level 2,4
2,8 2,0 2,3 2,3Business Strategy Management 2 Business Management 2 Business Transformation 4 Business Communication Management 1BPM Program Management 4 BPM Design 1 BPM Configuration Management 2 BPM Support Management 2BPM Change Program 2 BPM Organizational Design 2 BPM Change Management 1 BPM Governance 4BPM Cost Management 3 BPM Quality Management 3 BPM Knowledge Management 2 BPM Objectives Management 2
BPMBPMBPMBPM
Strategy Design Implementation Controlling
© IDS Scheer AG www.ids-scheer.com
The BPM Maturity Index determines whether the management team should start projects for:
1. The Formalisation & Management of the processes and procedures
2. The Standarisation & Alignment of the processes and procedures
3. The Optimalisation & Integration of the processes and procedures
4. The Innovation & Market Agility of the processes and procedures
BPM Cost Management 3 BPM Quality Management 3 BPM Knowledge Management 2 BPM Objectives Management 2
Experiences of more than 700 companies with BPM mat urity models (INK, EFQM)
�The average results of the use of BPM maturity concepts are :
� Growth of Sales (37-77%)
� Growth operating income (18-48%)
� Better return on sales (4,4%-8%)
© IDS Scheer AG www.ids-scheer.com
� More focus on the alignment of the business strategy and the processes
� Structure for operational management reporting and annual reporting
� Governance Structure for managing BPM within organisations
Agenda
ARIS BPM framework
Enterprise BPM framework
22
11
ROI BPM framework33
© IDS Scheer AG www.ids-scheer.com
Project
Preperation
As-IsModels Detailed
Process Models(Top/down)
Blueprint RealisationRealisationFinalFinal
PreparationPreparation
ProcessScope
E2EScope
E2EModels
FunctionalUnit Test
IntegrationTests
UserAcceptance
Test
RegressionTests
Go LiveGo Live
and Supportand Support Next Roll Out
Support &
Improvements
Impactassessment
BPM in een Project
SystemDocumentation
Scope Models
SystemScope
Org.Scope
InterfaceMap
BusinessRoles
SAP Org. Model
Test
AuthorisationMatrix
Tests
Change Request Management & Updated Process Models(Project Based)
Change Request Mgnt(Governance Based)
PublishApprovedBlueprintModels
DevelopEnd User Training
End User Training
PortalConcept
Businessprofiles
training
Changemanagement
Portal / content
Communication
UserDocumentation
BPM ControllingBPM ControllingBPM ImplementationBPM ImplementationBPM DesignBPM DesignBPM StrategyBPM Strategy
BPM BPM CommunicationCommunicationManagementManagement
BPM BPM SupportSupportManagementManagement
BPM configurationBPM configurationManagement &Management &Testing Testing
Processes Processes & project& projectManagementManagement
configurable start page with optionally• a start page image• a start model with clickable buttons • main menu functions
views on database are configured in start model
view on processes(navigation via
process assignmenttree)
view on organization(navigation via
assignment tree oforganograms)
overview of documents(navigation via
structured document list)
overview of files (navigation via flat list of files)
Doe s bankmas ter a lrea dy
ex is t?
Bank m as te rdoe s NOT
e xis t
Bank mas te rex is ts
Change of ba nkm as te r re quire d?
Change of ba nkm as te r re quire d
Cha nge ofbank ma ste rNOT re quire d
De let ion of bankm as te r re quire d?
Del et ion ofbank ma ste r
re quire d
Del et ion ofbank ma ste rNOT re quire d
Ba nk cha inupdate re quire d?
Crea te bankmas te r
C ha nge bankmas te r
Dele te ba nkmas ter
Crea te Bank
Change Bank
Set Fl ag toDele te Ba nk
Reques t forupdate
approve d
SA P R/3
SA P R/3
Busi ne s sSce na rio Update
bank mas terdata
ARIS EPC ARIS Test Scenarios TestDirector
TT
Test case
Journalapproved
Save journal ascomplete
transaction
Display savedjournal
Journal savedas completetransaction
No changesnecessary
Test case22
Test case22
TT
Test case
Journalapproved
Save journal ascomplete
transaction
Display savedjournal
Journal savedas completetransaction
No changesnecessary
Test case22
Test case22
TT
Test case
Journalapproved
Save journal ascomplete
transaction
Display savedjournal
Journal savedas completetransaction
No changesnecessary
Test case22
Test case22
TT
Tes t c ase
Save journal ascomplete
transaction
Display savedjournal
Journal savedas completetransaction
No changesnecessary
Test case22
Test case22
TT
Tes t c ase
Save journal ascomplete
transaction
Display savedjournal
Journal savedas completetransaction
No changesnecessary
Test case22
Test case22
TT
Tes t c ase
Save journal ascomplete
transaction
Display savedjournal
Journal savedas completetransaction
No changesnecessary
Test case22
Test case22
TT
Tes t c ase
Save journal ascomplete
transaction
Display savedjournal
Journal savedas completetransaction
No changesnecessary
Test case22
Test case22
TT
Tes t c ase
Save journal ascomplete
transaction
Display savedjournal
Journal savedas completetransaction
No changesnecessary
Test case22
Test case22
TT
Tes t c ase
Save journal ascomplete
transaction
Display savedjournal
Journal savedas completetransaction
No changesnecessary
Test case22
Test case22
Business Process Management platform based on ARIS
© IDS Scheer AG www.ids-scheer.com
ManagementManagement
OrganizationOrganizationStandardsStandards& BPO’s& BPO’s
Testing Testing
BPM KnowledgeBPM KnowledgeManagement &Management &TrainingTraining
ManagementManagement
BPM BPM GovernanceGovernanceManagementManagement
BPM Change BPM Change Management Management & & AuthorizationsAuthorizations
Sales ManagerGermany
Sales RepresentativeGermany
Sales ManagerGermany
Technical SpecialistGermany
Sales RepresentativeAmericas
EmployeeSales
Sales Manager
Sales ManagerAmericas
Technical SpecialistAmericas
Employee SalesGermany
Employee SalesAmericas
RoleRolePositionPosition
From ARISprocess modelto requ. Spec.
From portal to e-learning offers
From SAP applicationto ARIS process model
From ARIS Process modelto SAP applocation
From portal to FAQ lists
From portal to ARIS process world
From portal to requirements specification
Bank chain upda tere quire d
Ba nk cha inupdate NOT
re qui re d
Cre ate/ changeba nk data
Re ady t o informus e r of update tobank ma ste r da ta
Maintain bankchai ns f or
pa rtne r
SAP R/3
SAP R/3
JournalapprovedJournal
approvedJournal
approved
JournalapprovedJournal
approvedJournal
approved
BPM Governance Framework with BPM projects
BPM ControllingBPM ControllingBPM ImplementationBPM ImplementationBPM DesignBPM DesignBPM StrategyBPM Strategy
BPM BPM CommunicationCommunicationManagementManagement
BPM BPM SupportSupportManagementManagement
BPM programBPM programmanagementmanagement
Business & Business & Product Product ManagementManagement
BusinessBusinessStrategy & Strategy & BPM objectivesBPM objectives
Business Business Transformation Transformation ManagementManagement
BPM Testing &BPM Testing &Configuration Configuration ManagementManagement
ProcessesProcessesDesign Design ManagementManagement
Innovation & learning
Financial
Internal Business Perspective
How do we look to our stockholders?
At what must we excel?
Can we continue to improve and create value?
How do our customers see us?
Strategy
BusinessBusinessModelModel
ChangesChanges
BusinessBusinessProcessesProcessesChangesChanges
BusinessBusinessApplicationsApplications
ChangesChanges
New ServicesNew Services
New ProductsNew Products
AcquisitionAcquisition
New SalesChannelsNew SalesChannels
New MarketsNew Markets
New PartnersNew Partners
. . . . . .
New ProcessesNew Processes
NewProcess Flows
NewProcess Flows
NewDepartments
NewDepartments
New BusinessFunctions
New BusinessFunctions
New UPI‘sNew UPI‘s
NewResponsibilities
NewResponsibilities
New InformationAccess
New InformationAccess
ModificationsModifications CompositionComposition . . . . . .
IntegrationIntegrationExtensionsExtensions
StrategyStrategy
BPMBPM
ITIT
SA
P E
RP
UV
A
proj
Fase 1 Fase 2
Week / MaandCorporate Process Model level 1, 2 en 3
BPM inkoop (level 4)
Implementatie SSM en synchronisatie ARIS
Projecten adminstratie
Finance, HRM, Vastgoed
Studenten adminstratieProcess verbeteringen / Faculteit validatie (CM)
13 14 15 16 17 18 19 20 21 22
Fase 3
BP
M Opzetten BPM governance
23 24 25 26 27 28 29
Opzetten BPM conventies
Fase 4
BPMNBPMN
ARIS Repository
Event-Driven Process ChainWSDL
«interface»«wsdlPortType»
http://creditsales.soa.umg.ids.com/::CreditSalesSer vice
«wsdlOperation» +calculateCreditIncreaseProposal(in calculateCreditIncreaseProposa...«wsdlOperation» +changeCreditApplication(in changeCreditApplicationRequest: Credit...
«wsdlOperation» +checkCustomerPaymentCapacity(in checkCustomerPaymentCapa...
«reside»«reside»«reside»
«wsdlService»http://creditsales.soa.umg.ids.com/::CreditSalesSer vice
WSDL
«interface»«wsdlPortType»
http://creditsales.soa.umg.ids.com/::CreditSalesSer vice
«wsdlOperation» +calculateCreditIncreaseProposal(in calculateCreditIncreaseProposa...«wsdlOperation» +changeCreditApplication(in changeCreditApplicationRequest: Credit...
«wsdlOperation» +checkCustomerPaymentCapacity(in checkCustomerPaymentCapa...
«reside»«reside»«reside»
«wsdlService»http://creditsales.soa.umg.ids.com/::CreditSalesSer vice
BPEL
Process Execution
BPELBPEL
Process ExecutionProcess ExecutionProcess Execution
«busi nessClass»
Movie
ti tle: St ring
duration: Integer
«busi nessClass»Show
begi nni ng: Date = null
numberOfSoldTickets: Integer
schedule(i n begi nning: Date)
cancel()movie(): Movi e {query}
begi nni ng(): Date {query}
avai labl eTi ckets(): Integer {query}createReservat ion(in requestedTickets: I nteger): Reservat ion
cancelReservat ions()
addReservation(i n reservat ion: Reservati on)
«busi nessClass»
MovieTheater
name: St ring
shows(i n movi e: Movie): Show[ *] {query}
«busi nessClass»Theater
number: IntegerseatCount : Integer
shows(in movie: Movi e): Show[ *] {query}
shows(in movie: Movi e, i n begi nning: Date): Show {query}
1 1.. *1 1.. *
1
*
1
*
*1 *1
«busi nessClass»
Reservation
numberOfReservedTickets: I nteger
reservat ionCode: Integer
«create» create(i n show: Show, in numberOfTickets: Integer): Reservati on
*
1
*
1
«busi nessClass»
Ticket
* 1* 1
*
*
*
*
UML
Software Engineering
«busi nessClass»
Movie
ti tle: St ring
duration: Integer
«busi nessClass»Show
begi nni ng: Date = null
numberOfSoldTickets: Integer
schedule(i n begi nning: Date)
cancel()movie(): Movi e {query}
begi nni ng(): Date {query}
avai labl eTi ckets(): Integer {query}createReservat ion(in requestedTickets: I nteger): Reservat ion
cancelReservat ions()
addReservation(i n reservat ion: Reservati on)
«busi nessClass»
MovieTheater
name: St ring
shows(i n movi e: Movie): Show[ *] {query}
«busi nessClass»Theater
number: IntegerseatCount : Integer
shows(in movie: Movi e): Show[ *] {query}
shows(in movie: Movi e, i n begi nning: Date): Show {query}
1 1.. *1 1.. *
1
*
1
*
*1 *1
«busi nessClass»
Reservation
numberOfReservedTickets: I nteger
reservat ionCode: Integer
«create» create(i n show: Show, in numberOfTickets: Integer): Reservati on
*
1
*
1
«busi nessClass»
Ticket
* 1* 1
*
*
*
*
UML
«busi nessClass»
Movie
ti tle: St ring
duration: Integer
«busi nessClass»Show
begi nni ng: Date = null
numberOfSoldTickets: Integer
schedule(i n begi nning: Date)
cancel()movie(): Movi e {query}
begi nni ng(): Date {query}
avai labl eTi ckets(): Integer {query}createReservat ion(in requestedTickets: I nteger): Reservat ion
cancelReservat ions()
addReservation(i n reservat ion: Reservati on)
«busi nessClass»
MovieTheater
name: St ring
shows(i n movi e: Movie): Show[ *] {query}
«busi nessClass»Theater
number: IntegerseatCount : Integer
shows(in movie: Movi e): Show[ *] {query}
shows(in movie: Movi e, i n begi nning: Date): Show {query}
1 1.. *1 1.. *
1
*
1
*
*1 *1
«busi nessClass»
Reservation
numberOfReservedTickets: I nteger
reservat ionCode: Integer
«create» create(i n show: Show, in numberOfTickets: Integer): Reservati on
*
1
*
1
«busi nessClass»
Ticket
* 1* 1
*
*
*
*
UML
Software EngineeringSoftware Engineering
Rules
Rules Execution
Rules
Rules Execution
RulesRulesRules
Rules ExecutionRules Execution
BANF _Upd ateBANF _I F
BANF _Upd ateBANF _I F
BANF _Upd ateBANF _I F
BANF _Upd ateBANF _I F
BANF _Upd ateBANF _I F
BANF _Upd ateBANF _I F
configurable start page with optionally• a start page image• a start model with clickable buttons • main menu functions
views on database are configured in start model
view on processes(navigation via
process assignmenttree)
view on organization(navigation via
assignment tree oforganograms)
overview of documents(navigation via
structured document list)
overview of files (navigation via flat list of files)
End users
checkcheck
update update
create
model
create
model
transfertransfer
approvedapproved
Development database
Production database
Archive database
releasedreleased
checkcheck
approvedapproved
transfer transfer
checkcheck
checkcheck
Review database
RCM – workflow
Modelling
RCM-scripts
Database Synchronisation and Web publication
1
6a
5
4
32 6b 8
10
© IDS Scheer AG www.ids-scheer.com
BPM Change BPM Change ProgramProgram
ManagementManagement
BPM KPI’s BPM KPI’s ManagementManagement& SLA’s& SLA’s
BPM BPM Financial Financial ManagementManagement
OrganizationOrganizationStandardsStandards& Ownership& Ownership
QA ManagementQA Managementfor BPM for BPM improvementsimprovements
ControlMonitoring the new
process
DefineARIS Process
Models, Objectives,Project description
AnalyseCalculations & comparisons ofhistorical data
ImproveWhat if scenariosand definition of
tasks
MeasureARIS Business
OptimizerScenarios
ControlMonitoring the new
process
DefineARIS Process
Models, Objectives,Project description
AnalyseCalculations & comparisons ofhistorical data
ImproveWhat if scenariosand definition of
tasks
MeasureARIS Business
OptimizerScenarios
ManagementManagement
BPM trainingBPM training& knowledge& knowledgeManagementManagement
ManagementManagement
BPM BPM GovernanceGovernanceManagementManagement
Change Change Management Management & & AuthorizationsAuthorizations
Structural Relations between Process Management Rol esStructural Relations between Process Management Rol es
Process Coordinator(Country 2)
Head ofGroup Process Mgmt
Head ofGroup Process Mgmt
Process Owner(e.g. Retail Loan)
…
Process Coordinator(Retail Loan)
Process Owner(e.g. …)
Process Owner(e.g. Retail Loan)
…
Process Owner(e.g. …)
Process Owner(e.g. Retail Loan)
…
Process Owner(e.g. …)
Process Owner(e.g. Retail Loan)
…
Process Owner(e.g. …)
Process Owner(e.g. Retail Loan)
…
Process Owner(e.g. …)
…
Group CompetenceCoaches
Group CompetenceCoaches
CompetenceCoaches
CompetenceCoaches
CompetenceCoaches
CompetenceCoaches
CompetenceCoaches
CompetenceCoaches
CompetenceCoaches
CompetenceCoaches
CompetenceCoaches
CompetenceCoaches
Head of PM(Country 1)
Head of PM(Country 1)
Head of PM(Country 2)
Head of PM(Country 2)
Head of PM(Country …)Head of PM(Country …)
Head of PM(Country …)Head of PM(Country …)
Head of PM(Country n)
Head of PM(Country n)
MethodologyView
Bus
ines
sV
iew
MethodologyView
MethodologyView
Bus
ines
sV
iew
Bus
ines
sV
iew
…
Process Owner(central Credit BO)
Process Owner(e.g. …)
Process Owner(e.g. …)
Process Owner(e.g. …)
Process Owner(e.g. …)
Process Owner(e.g. …)
EXAMPLE
Business Business ProcessProcess ExpertsExperts
5 Year 1 Year 2 Year 3 Year 4 Year 5 totals
7.158.700 1.574.914 1.574.914 1.574.914 1.574.914 13.458.356
33.609.224 67.218.447 100.827.671 120.993.205 134.436.895 457.085.443
26.450.524 65.643.533 99.252.757 119.418.291 132.861.981
26.450.524 92.094.057 191.346.814 310.765.106 443.627.087
26.450.524 57.582.047 76.371.774 80.603.945 78.664.959
Cummulative DCF 26.450.524 84.032.571 160.404.344 241.008.290 319.673.248WACC =14%
NPV 319.673.248
ROI 3296 ,29%PBP 0,15
Discounted Cash F lows
Total cost
Total Benefits
Net Cash Flow (NCF)
Cummulative NCF
Benefit per Solution
BPM
ITAMERPGRC
CPM
BPM ITAM ERP GRC CPM
Benefits per Phase
Design
Strategy
Controlling
Implement
Strategy DesignImplementation Controlling
Costs per Phase
Strategy
DesignImplementati
on
Controlling
Strategy Design Implementation Controlling
Costs per Solution
BPM
ITAM
ERP
GRC
CPM
BPM ITAM ERP GRC CPM
BP
M G
overnance
Opzetten BPM governance basis omgeving
Uitwerking van het BPM Governance ConceptImplementatie van het BPM Governance Concept
KP
I
Set-up PPM envrionment
Link KPI to Process model
Figure 12-2Figure 12-2
without change management
Har
t fac
ts(m
easu
rabl
e)S
oft
fact
s(li
mite
d m
es.)
Culture
ManagementEmployees
Knowledge
Organization
Processes
Strategy
IT
Scope of projects
with change managementScope of projects
without change management
Har
t fac
ts(m
easu
rabl
e)S
oft
fact
s(li
mite
d m
es.)
Culture
ManagementEmployees
Knowledge
Organization
Processes
Strategy
IT
Scope of projects
with change managementScope of projects
Process Execution
…
Process Execution
…
Process Execution
…
Process Execution
…
Software Engineering
…
Software Engineering
…
Software Engineering
…
Rules Execution
…
Rules Execution
…
Rules Execution
…
Rules Execution
……
Process Structure & Levels
Standards, Conventions, Handbook, Guidelines
Tools
Procedures
Roles
Responsibilities
Steering Committee
Different SAP & BPM Projects : Blueprint, Realizati on and SupportDifferent SAP & BPM Projects : Blueprint, Realizati on and Support
CommonProcess
Repository
BPM Approach &Standards
BPMOrganisation
Standard Corporate
Process Model
Standard Corporate
Process ModelBPM Im plem en tationBPM Im plem en tationBPM Des ig nBPM Des ig nBPM Strate gyBPM Strate gy
BP M Ch ange BPM Ch ange Program & Program & Cap abi li ty manag ementCap abil i ty manag ement
BP M Sco pe &BPM Sco pe &BP M programBPM programmanagemen tma nagemen t
Bu sin ess & Bu sin ess & Prod uct requ irement sProd uct requ irement sM anage men tM anagemen t
BP M Co st &BPM Co st &Vend or Vend or managemen tma nagemen t
Bus ine ssBus ines sSt rate gySt rateg y& & KP IKP I’’ ss
Busi nes s Busi ness Transf ormat ion Transf ormati on ma nagemen tma nagement
QM stan dards QM s tan dards fo r BP M fo r BP M improve me nt simprove me nts
BPM B PM KP IKPI ’’ ssPerf orma nceP erfo rman ce& SLA& SLA ’’ss
BPM Con trol l in gBPM Co n trol l in g
BPM B PM Supp ortS upp ortMan agementM an agement
Organ izat i onOrgan izat i onSt andard sSt andards& Ow nershi p& Ow nershi p
BPM Tool s &BPM Tool s &Con fi gurat i onCon fi gurat io nSt andardsSt andards
BPM trai ni ngBPM trai ni ng& know le dge& know le dgeMan agementMan agement
Process Process & Proj ect& Proj ectSt andard sSt andards
BPM B PM Gov ernanceG ove rn anceMan agementM an agement
Chan ge Ma nagementChan ge Man agementSt andards St andards & Resp onsi bi ti es& Resp onsi bi ti es
B PM B PM O perat i onalO perat io nalman agementmana gement
BP M CC TCC e xpe rt Co nsu lt an tBP M CC exp ert sBP M and P D S A P
B PM CC e xpert sB PM an d PD SA P
B PM CC GRC ex pert Cons ul ta nt
BPM CC
B PM t ra in in g expe rtB PM ch ang e mana ger
B PM mod el ersB PM ad min ist rator
B PM S AP PD expe rtB PM CPM ex pert
B PM GRC ex pertB PM QA e xpert
BPM CC
B PM CC h ead
CPO = Chi ef P ro ces s Of f ice r
B PM E A exp ertB PM arch it ectTechnology (basi s, pr ogr amm ing, etc. .. )
GR C t eam ( cont rol s, author izat ion, etc…)
Change, C omm unicati on and Trai ning team
nt egrat ion & Docum entat ion
Technology (basi s, pr ogr amm ing, etc. .. )
GR C t eam ( cont rol s, author izat ion, etc…)
Change, C omm unicati on and Trai ning team
OTC e.g . Pr ocess X e.g.
Pr oject Managem ent
PT P e. g.
Technology (basi s, pr ogr amm ing, etc. .. )
GR C t eam ( cont rol s, author izat ion, etc )
Change, C omm unicati on and Trai ning team
I ntegr ation & Docum entat ion & Suppor t
Chi ef Infor m ation Of fi cer
ERP Co mp ete nc e Cen ter Ma na g erERP Co mp eten c e Cen ter Ma na ge r
SAP H elpd eskSAP H elpd eskSAP con sult antsSAP con sult antsSAP t est ingSAP t est ing
S AP Basi s supp ort S AP Basi s supp ort S AP ABA P Suppor tS AP ABA P Suppor tS AP SSM suppor tS AP SSM suppor t
SAP A utho ri sati on suppor tSAP A utho ri sati on suppor tSAP D ocum enta ti on sup portSAP D ocum enta ti on sup portSAP T rai ning suppo rtSAP T rai ning suppo rt
B usi nes s A rchi tec tI nf ormat io n A rchi te ct
A pp li cat ion A rchit ectI nf rast ruct uur A rc hit ect
R i sk & Co nt ro l Archi t ectQA ma nage r
Orga nisa ti on archi t ectH R M / Commu nica ti on
B usi nes s U sersL ib ra ri an
(G)BP O = (Glob al ) BP O
(G)BP M = (Glo bal ) B PM
Bus in es s Own ers
ARIS QAARIS Modeller/
BPM CC Expert
update
model
update
modeltransfer
transferrejected
rejected Archive database
archivedarchived
rejectedrejected
(G)BPO and/or
Architectural Owner
7
9
Alignment of multiple views in ARIS
Processes RFC
Process ViewsBPM targets Business RFC
Projects
Products & Services
Processes
© IDS Scheer AG www.ids-scheer.com
Processes info
Processes StatusFunctions
Process Analysis
Organization
Cost BPM KPI’s
Objectives Systems / tools
Evolution of Business Modeling to Business Process ManagementB
usin
ess
Sem
antic
s Business Analysis Modeling
Operational BPM Platform
Business Strategy Modeling
© IDS Scheer AG www.ids-scheer.com
Bus
ines
s S
eman
tics
Flowcharts
Corporate Process Model
Time
Business Strategy Modeling
C re a t ec u s to m e r
o rd e r
L e g a c y A p p XC u s to m e ro rd e r
c re a t e d
C u s to m e ro rd e r
re c e i ve d
S a l e s e m p l o y e e
Th r o u g h p u t t im eO rd e r p ro c e s s i n g
W I
R i s k o f m u l ti p lec u s t e n t ri e s
Publication
© IDS Scheer AG www.ids-scheer.com
Agenda
ARIS BPM framework
Enterprise BPM framework
22
11
ROI BPM framework33
© IDS Scheer AG www.ids-scheer.com
© IDS Scheer AG www.ids-scheer.com
Strategic Alignment is a primary driver
40%
50%
60%
70%For which of the following reasons did you implement a BPM solution?
(Multiple responses allowed)
Why start with BPM ?
© IDS Scheer AG www.ids-scheer.com
62% 58% 51% 43%
51% 36% 31%
12%0%
10%
20%
30%
40%
Improve clarity and
agreement on true business
drivers
Align day-to-day
activities to business strategy
Allow effective
management intervention
Achieve speed and accuracy of management reports
Reduce cycle time of planning
and reporting
Identify and eliminate non-value add activities and reporting
Facilitate SOX ongoing compliance
Enhance productivity in day-to-day
activities
Strategy alignment Efficiency
Source: Seventh Annual Survey of Technology Issues for Financial Executives – 2005.
High level financial business case for BPM projects
ControllingControllingImplementationImplementationDesignDesignStrategyStrategy
BPM communicationsBPM communicationsManagementManagement
Reduce Operational costsReduce Operational costs
By allignment of the business usersBy allignment of the business usersand business process informationand business process information
BPM Support BPM Support ManagementManagement
Reduce BPM costsReduce BPM costs
BPM Scope & BPM programBPM Scope & BPM programManagementManagement
Reduce Project costsReduce Project costs
Business & Business & Product ManagementProduct Management
Improve RevenueImprove Revenue
By go to market alignment of business By go to market alignment of business requirements and market segments requirements and market segments
Business Strategy & Business Strategy & BPM objectivesBPM objectives
Improve RevenueImprove Revenue
By company focus on profitable By company focus on profitable market segments & market strategymarket segments & market strategy
Business Transformation Business Transformation ManagementManagement
Reduce Operational costsReduce Operational costs
By effective execution of the By effective execution of the business processes and planningbusiness processes and planning
BPM Tools & ConfigurationBPM Tools & ConfigurationStandardsStandards
Reduce Project costsReduce Project costs
Process & Project Process & Project StandardsStandards
Reduce Project costsReduce Project costs
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BPM Change Program & BPM Change Program & Objectives ManagementObjectives Management
Reduce HRM costsReduce HRM costs
By allignment of HRM / resource By allignment of HRM / resource planning and company objectivesplanning and company objectives
By efficient support management of By efficient support management of the BPM business processesthe BPM business processes
By optimalisation of the company By optimalisation of the company project portfolioproject portfolio
BPM KPI Management BPM KPI Management & SLA’s& SLA’s
Reduce Operational costsReduce Operational costs
By management on the BPM KPI By management on the BPM KPI performance of the processes performance of the processes
BPM Financial BPM Financial ManagementManagement
Reduce Operational costsReduce Operational costs
By controling the ROI of Projects By controling the ROI of Projects and company costs (ABC)and company costs (ABC)
Organization Organization Standards Standards & Ownership& Ownership
Reduce Project costsReduce Project costs
By efficient design and utilizationBy efficient design and utilizationof the process organisation of the process organisation
QM standards for BPM QM standards for BPM ImprovementsImprovements
Reduce Operational costsReduce Operational costs
By optimalisation of the By optimalisation of the business processesbusiness processes
By efficient configuration and By efficient configuration and validation of the processes validation of the processes
BPM training & knowledgeBPM training & knowledgeManagementManagement
Reduce Operational costsReduce Operational costs
By improvements of the BPM By improvements of the BPM competencies of the employees competencies of the employees
By efficient design and utilizationBy efficient design and utilizationof the business processesof the business processes
BPM Governance BPM Governance ManagementManagement
Reduce BPM costsReduce BPM costs
By effcient management of the BPMBy effcient management of the BPMorganisation and the BPM standardsorganisation and the BPM standards
Change Management Change Management & & AuthorizationsAuthorizations
Reduce Project costsReduce Project costs
By efficient implementation of theBy efficient implementation of thejob descriptions and authorizations job descriptions and authorizations
BPM Business Value Map
Business Strategy Management 70.974 Business Management 85.169 Business Transformation 184.400 Business Communication Management 147.520BPM Program Management 38.400 BPM Design 38.400 BPM Configuration Management 25.600 BPM Support Management 4.750BPM Change Program 44.820 BPM Organizational Design 12.800 BPM Change Management 12.800 BPM Governance 3.800BPM Financial Management 73.760 BPM Quality Management 442.560 BPM Knowledge Management 221.280 BPM Objectives Management 73.760
Total 227.954 Total 578.929 Total 444.080 Total 229.830 Total 1.480.793
BPMBPMBPMBPM
Strategy Design Implementation Controlling
© IDS Scheer AG www.ids-scheer.com
The financial calculations are based on the following financial key figures;
� Revenue
� Yearly logistic / operational costs
� Yearly Employee costs
� Profit margin
� Yearly cost of project portfolio
� Yearly average BPM project costs
� Yearly average BPM maintenance costs
5 Year 1 Year 2 Year 3 Year 4 Year 5 totals
7.158.700 1.574.914 1.574.914 1.574.914 1.574.914 13.458.356
2.231.651 4.463.301 6.694.952 8.033.942 8.926.602 30.350.447
-4.927.050 2.888.387 5.120.038 6.459.028 7.351.688
Total cost
Total Benefits
Net Cash Flow (NCF)
Benefit per Solution
BPMITAM
GRC
CPM
CAF
BPM ITAM CAF GRC CPM
Benefits per Phase
Design
Strategy
Controlling
Implement
Strategy DesignImplementation Controlling
The benefits of a Holistic BPM Strategy
In what area will I benefit the most?
When will I reach the benefits?
© IDS Scheer AG www.ids-scheer.com
-4.927.050 -2.038.663 3.081.375 9.540.403 16.892.091
-4.927.050 2.533.673 3.939.703 4.359.660 4.352.789
Cummulative DCF -4.927.050 -2.393.377 1.546.326 5.905.986 10.258.775WACC =14%
NPV 10.258.775
ROI 125,51%PBP 2,22
Discounted Cash Flows
Cummulative NCF
Costs per Phase
Design
Strategy
Implement
Controlling
Strategy Design Implementation Controlling
Costs per Solution
BPM
ITAMGRC
CPM
CAF
BPM ITAM CAF GRC CPM
In what area should I invest?
When should I invest?
Support of the Central Management Team and the CPO is required.Support of the Central Management Team and the CPO is required.
ROI calculation can be made based on annual report and benchmark valuesROI calculation can be made based on annual report and benchmark values
McKinsey Global Survey
750+ CEOs 750+ CEOs agree that Business Model Innovation and Strategic Flexibility / Business Agility are top priorities and Critical Su ccessFactors.
© IDS Scheer AG www.ids-scheer.com
Any questions?Any questions?
Frank Luyckx
T: +31(0)6 433 642 32
© IDS Scheer AG www.ids-scheer.com
T: +31(0)6 433 642 32
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