BPTF Architecture Overview - Value Chain Group

Copyright©2010ValueChainGroupallrightsreserved|/ExecutiveSummary2ExecutiveSummaryBusinessProcessTransformationFramework(BPTF)isanemergingmethodology/technologyforprocessmanagementdirectlytiedtobestpracticesandconfigurableITsystemschoices.Theultimateobjectiveisimprovedalignmentbetweenbusinessstrategy,businessprocesses,peopleandsystemsnecessarytosupportthatstrategy.Thisalignmentreducesbusinessprocesstransformationcycletimesandmitigatesriskofimprovementprojectfailuresandcostoverruns.Fromastrategicviewpoint,BPTFprovidesfunctional/operationalprocessdecompositionandvalueanalysiswhichiscriticalinevaluatingtherelativevalue/contributionofoperationaltacticsandstrategies,existingoperationalprocessesandITportfolios,andultimatelyprovidesasupportfoundationforinvestmentdecisionsandchangesinorganizationdesign,operationalprocessesandinformationtechnology,supportthatminimizesriskandmaximizesthevalueofthoseinvestments.Value,however,isintheeyeofthebeholder.Ineveryindustrythereareconsiderationsandtradeoffsthatmustbemadebasedonbusinessstrategy,culture,corecompetencies,competitivepressures,andchangesthatcomefromeverydirection.Intheinsuranceindustry,forexample,StateFarmInsurancebasesitscompetitivestrengthuponitsextensiveagencyenvironmentandpersonalservice–astrategythatcanbemoreexpensivethanothers.ProgressiveandGeico,bycomparison,haveamore“directtoconsumer”strategy.Tosupporteitherstrategy,systemsandprocessescanbedesignedtoprovidepromptclaimsserviceandcustomersatisfaction,butthesecanrepresentasignificantdrainoncashflow.Inmanufacturingcompanies,buildtoorderorengineertoorderstrategiescanprovideforgreatermarketagility,improvedcustomersatisfactionandreducedinventorycosts,butcanalsoaddcapacityandlaborcostscomparedwithamaketostockmassproductionstrategy.Outsourcingcanleadtogreatoperationalefficiency,reducedoverheadexpense,andreducedtimetomarket,butoftencomeswiththetradeoffsoflosingcontroloverproducts,qualityandthecustomerresponsiveness.Thesestrategiesandchoicesprovidethedesignchallengeandresultindifferencesineverydesigninitiative.AprocessdesignsolutiontoacommonbusinessissuewillbedifferentatAMDthanatIntel;thesameprocessesimplementedatStateFarmwillhavedifferentoutcomesNationwide;andsystemsimplementedbyGeneralMotorsmaynotbetherightsolutionforFord.Withshrinkingproductlifecyclesandproductvariantproliferation,manyformerlysequentialbusinessprocessesnowrequireparallelandcrossfunctionalcollaborativeactivities.Withthischange,transactionalinformationflowbetweentraditionalfunctionaldepartmentshasalsochanged,bynecessity,intoarealtimenetworkofdigitaldataoftenspanningtheglobe.Businessprocessesbecomemuchmorecomplexwithcountlessinformationdependenciesasthemanagementfocusexpandsfrominsidethewallsofacompanytoencompassingtheentiresupplychain.Relentlesspressuretospeedtheflowofbusinessinformationisfurtherconfoundedbyrequirementstoprovideinformationinmultiplecontextstomeettheinformationrequirementsofvariousfunctionalgroupsandalllevelsoftheorganization.Simultaneously,companiesarefacingmoreandmoreaggressiveglobalcompetitionandmustbeabletoexpandtheirvaluechainstodealwiththeseglobalchallenges.Beingabletostandardizeandreapplybusinessprocessesquicklyinexpandedoperationsorinacquisitionsbecomesakeystrategytodealwiththisincreasingcomplexityandexpansion.