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BPM Best Practices
Mechelen, November 24th 2008
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BPM Best PRactices| Page 2
Why BPM for Dummies?
Take a copy for your boss!
A market rich in awareness but
poor on understanding Lots of different perspectives
across the enterprise
Misunderstanding about
webMethods/Software AG
>40,000 CopiesDistributed
5Languages
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39 Years of Recognized Software Expertise
Over 4,000 global customers in 70 countries Gartner Research:
Leader in BPMS Leader in SOA Governance Leader in B2B
Forrester Research: Leading Enterprise Service Bus Provider Leading Business Process Management Suite
AMR Researchs top-ranked solution forSOA/BPM
Financial Strength and ReachAnnualized revenues approaching $1B
Highly profitable (EBIT margin 23% in 2006) Over 65 global partners
Software AG At Glance
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Software AG webMethods Suite
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BPMS Customer Success
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BPMS Technology ArchitectureUnified Workspace
Task InboxesMonitoring
Dashboards (BAM)User Interfaces
(CAF)
Execution EnvironmentBusiness Rule
EngineAnalytics
Engine (BAM)ProcessEngine
Simulation Engine
Process Design
Process Modeling Process Development &Implementation
KPI Definition
Rule Definition
UI Design
Metadata Management
Integration/SOA
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A New Approach
IT
BusinessInfrastructure
Software
BusinessInfrastructure
SoftwareDrag & Drop Service ReuseComposite ApplicationsBusiness RulesSimulation
Business
InputProcess ModelingBusiness RulesCollaboration ToolsSimulation
Business
Output
Intuitive Process WorkspaceReal-time Monitoring & Analytics (BAM)
Improve
Compose
SimulateModel
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What Makes webMethods BPMS Different?
1.All process scenarios2.Completeness3.Suite!
4.Apple-like Usability5.Performance-driven6.Time-to-Business-Value
7.Governance
Enterprise BPM
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Cox CommunicationsInnovation in Productivity and Customer Service
Field
Service
Productivity
CustomerService
Excellence
Save 10 minutes per Field Service Rep (FSR) per day. At
3,500 FSRs and a rough cost of $25 per hour per tech, thatwould deliver some $4.4 million annually in productivity gains
and nearly $40 million in net present value
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Autotrader.comInnovation in Customer Retention
Proactive Alerts Project
event driven service alerts trigger and assign tasks to sales rep
Goal = reduce dealer cancellations
Business users own and document
agile business processes
Real-time monitoring andreporting of retention lifecycle
Reduced cancellation of dealercontracts by 20% in year 1 and
reclaimed all associated revenue
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Initiative to eliminate all paper-
based processes Leave and attendance forms and
workflow was most intensive andmost valuable
Personnel costs = 80% of total
expenses Process model at the heart of the
system Project extended/enhanced the
existing legacy systems and
demonstrated their extensibility
Florida Community College JacksonvilleInnovation in HR
Reduced average approval and
submission time from 5 business daysto
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Best Practices in Enterprise BPM
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Achieving Perspective
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Local Execution
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BPM Maturity
Immature Maturing Mature
No processdocumentation
No processdocumentation
Norecognitionof processproblems
No culture ofprocess
Norecognition
of processproblems
No culture ofprocess
Somedocumentation,
but nosophisticated or
integratedtoolset
Somedocumentation,
but nosophisticated or
integratedtoolset
Processtools
Processtools
Processmetrics
Processmetrics
Basicmethodology
Basicmethodology
Processrepository
Process reuse
Processrepository
Process reuse
Clear enterpriseprocess
methodology
Clear enterpriseprocess
methodology
Processcontrollership
Processeslinked tobusinessstrategy
Processcontrollership
Processeslinked tobusinessstrategy
A culture ofprocess in
place
A culture ofprocess in
place
Inter-Enterprise BPMInter-Enterprise BPM
Multi-process,multi-
department.Enterprise BPM
Multi-process,multi-
department.Enterprise BPM
Linked BPMand SOA
strategies
Linked BPMand SOA
strategies
Typical
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The Move to Enterprise BPM
100%272Total
2%6No interest
23%63Exploring opportunities
25%69
Initial commitment to limited number of mid or
low-level projects
24%64
Significant commitment to multiple high level
process projects
26%70
Major strategic commitment by executive
management
How would you characterize your organization's current interest in BPM? (Choose
one)
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Getting Started With Enterprise BPM
Engaging the Business
Choosing Projects
Managing Projects
Dealing with BPMs Politics
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Engaging the Business
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Learn What You Can About the Business I
OperationalExcellence
Consistent, predictable,low cost, error free, efficient
More efficient but less flexible
in changing directions or meeting
needs of individual customers
CustomerIntimacy
Tailors service delivery to the
processes of individual customers
More flexible for adapting to
specific customer needs
(but less efficient)
ProductLeadership
Continuous and rapid introductionof new products and services
More flexible for adapting to needs
of new offerings (but less efficient)
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Learn What You Can About the Business II
1. What must the first accomplish this year to be successful?
2. What competitive factors have impacted us most in the last 2years?
3. What are the three most important products or services?
4. What are the sales of each and how will that change over the
next 2 years?5. What is the largest change in the works for products or services?
6. What is the demographic serviced by each of the products?
7. What us our market share in each product? Changes?
8. Who are our main competitors?9. What is the strategy for each product line? What is the
differentiator?
10.How are our competitors better exploiting processes or IT than
us?
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Measure First
BPM..Where to Start?
1. Determine whats critical tobusiness success
2. Define KPIs & monitor with
Optimize for Process
3. See whats working and whatisnt
4. Focus improvement on areas ofday-to-day pain
..without ever havingorchestrated a process
Focus Efforts, Maximise ROI
An On-RampFor BPM Success
ProcessImprovement
Lifecycle
Measure First
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Choosing Projects
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TransformationTransformationTransformation
InitiativesInitiativesProjectsProjects
ProjectsProjects
Understand Your Scale
DiscreteLocalized
Stable
Tactical
Short Term
Continuous
Ubiquitous
Routine
Visionary
Longer Term
InitiativesInitiativesProjectsProjects
ProjectsProjects
ProjectsProjects
Breakthrough
EnterpriseDestablizing
Strategic
Medium Term
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Supporting Organizational Strategy
ResourcesResourcesPeople Applications
Materials ServicesData
ProcessBPM
StrategyStrategy
Functions & Projects
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Size Matters
Big ProjectBig ReturnsSteep Learning Curve
Higher chance of failure
Small ProjectSmaller ReturnsLearning By DoingHigher chance of Success
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What Processes Are People Improving?
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Managing Projects
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The Role of the Process CoE
BPMCoE
Aligning with
CorporateStrategy
Aligning with
CorporateStrategy
ControllingGovernanceControllingGovernance
Consistent adoptionand alignment of
methodologies
Consistent adoptionand alignment of
methodologies
DevelopmentOf BPM
Roadmap/Vision
DevelopmentOf BPM
Roadmap/Vision
EncouragingCollaborationEncouragingCollaboration
Consistent adoptionof tools and process
frameworks
Consistent adoptionof tools and process
frameworks
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Keys to Success with BPM CoE
Dont form a CoE too early
Evolve an existing (Integration) Competency Center Ensure cross-team support
Finance
EA team (governance role)
LoB Ensure executive representation
Address a framework for definition of KPIs developing a
consistent business case
Address a consistent methodology for project selection
Ensure consistent communication
Meet face-to-face
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Dealing with Politics, Roles, etc.
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Understand Your Org Structure
Understand the current
roles and responsibilities inyour organization
Note: There are two
versions.the official,
documented version and
the real version
Investment here saves time
later Start to think about how
they could changebut be
careful!
Thanks to Alec Sharp of Clariteq Systems for concepts in this slide
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Improvement is Hard
Thats why we must: Make it clear - what processes reallyare
Make it visible how theirprocesses behave
Make it blame-free everyone is working hard
.Then let the facts speak for themselves
Honest criticism is hard to take, especially from a
relative, a friend, an acquaintance, or a stranger.
Franklin P Jones
Honest criticism is hard to take, especially from a
relative, a friend, an acquaintance, or a stranger.
Franklin P Jones
Thanks to Alec Sharp of Clariteq Systems for concepts in this slide
Thanks to Alec Sharp of Clariteq Systems for concepts in this slide
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Acknowledge Different Perspectives.But Get Agreement
If you cant agree on what a process is, youll have a hard timediscovering, modeling and improving one!
p q y p
Size Concept
Bigger than a business process: Customer relationship management A group of related processes
Smaller than a business process: Setup customer A sub-process or activity
Much smaller than a business process:
Calculate credit limit A procedure or task
Confusion with organisation: Our Customer Service process
Confusion with systems: Our Oracle CRM system
Confusion with technology:
Our e-business strategy
A True Business Process Acquire Customer
Thanks to Alec Sharp of Clariteq Systems for concepts in this slide
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Functions are Critical
BPM aligns the objectives and work of functions
Functional structure is an efficient organizational concept Contain specialized knowledge, skills and experience
But they must be coordinated and managed as a whole
Dont call them functional silos Be positive.You are improving their ability to do their job
Where they fit into the value chain and how they contribute
How they focus on delivering value
Sales AccountsReceivable
Production Logistics
Process: Order Fulfilment
p q y p
Thanks to Alec Sharp of Clariteq Systems for concepts in this slide
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3 Common Obstacles
1. Processes are not identified properly and made visible2. No process owner to set overall direction and resolve conflict
3. The goals of the functions often conflict with the goals of the process
Sales AccountsReceivable
Production Logistics
A/R Goal:Precision vs. rapid
collection
Logistics Goal:
Lowest cost ofdelivery
Production Goal:Minimize setup
Sales Goal: pushfor end of quartersales
Process goal:
Shortest CycleTime
Process: Order Fulfilment
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Other Best Practices and Pitfalls
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The Importance of Data
Metadata
Handling an increasinglycomplex and granular
environment
What stuff do you have?
Master Data Management Youre aligning systems around
a single item of workflow
Data quality and consistency
are critical
Now That Should Clear Upa Few Things Around Here!
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10 BPM Best Practices/ Common Pitfalls
Ready, Fire, Aim!
Automate This!The veiled RIF Program
Ignoring End Users
Liberate and GovernHear the Voice of the Customer
Adopt a Methodology
Ignoring Master/Meta Data IssuesNot Thinking Differently
Doing it All Yourself
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BPM Best Practices
Thank you!