Mathias Kirchmer - Accenture - Casewise

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Mathias Kirchmer - Accenture - Casewise

The potential of Business Process Management (BPM) -“Value of process”• Operating cost reduction: minimum 10%+, potential of40%-80%• Competitive advantage: already when relevant underlyingprocesses are 10-15% better• Sustainable advantage: difficult to copy* 2010 Accenture/Gartner “Process Based Advantage” Research (US, UK, Germany)Copyright © 2012 Accenture All rights reserved.3


Typical triggers for BPMStandardizationInitiativesComplianceInitiativesPost M&ARationalizationMajorTransformationProgramsInnovation &GrowthBPMCoreSystemImplementationNext GenerationProcessAutomationEstablishment of aBPM UnitRiskManagementEmergingCompetitionCost ReductionProgramsCopyright © 2012 Accenture All rights reserved.


Content• Value of business process management (BPM)• Value-driven BPM – a powerful management discipline• Value-driven BPM - establishing the capability* 2010 Accenture/Gartner “Process Based Advantage” Research (US, UK, Germany)Copyright © 2012 Accenture All rights reserved.6


Value-driven Business Process Management“… the management discipline that uses process … to translate business strategy intoexecution. It sets the right focus for initiatives … and converts business processes into realassets … makes business processes more adaptable, enabling more agility…”*Copyright © 2012 Accenture All rights reserved.* Franz, P, Kirchmer, M.: Value-driven Business Process management –The Value Switch for lasting Competitive Advantage. New York, e.a. 2012.7


Focusing on projects, increasing crossfunctionalcoordinationValue-driven Business Process Management –Delivering quick benefits while building lasting capabilitiesFix,ImproveLastingProcessPerformanceEnable,SustainStartFocusing on “process”, increasinginfrastructure and controlsCopyright © 2012 Accenture All rights reserved.8


Appropriate ApproachpreventsValue-driven BPM prevents issues where possible,traditional Continuous Improvement (CI) fixes issuesfixesIssuereactivetriggersCI InitiativeproactiveTransparencycreatesValue-driven BPMCopyright © 2012 Accenture All rights reserved. 9


On the heart of the BPM Capability Blueprint is theProcess of Process ManagementBPM OperationsBPM Maturityand Value AnalysisProcessValue AnalysisRoadmapGovernanceBPM Methods & ToolsBPM DeliveryBPM TransformationBusinessArchitectureProcessStrategyProcessAnalysisCulture &People Change ManagementStandards &GuidelinesProcessImprovementMethodsProcessDesignProcessImplementationBPMCommunityRepositoryBPM SystemsProcessExecutionProcessMonitoringProgram & ProjectManagementBPM SupportFinanceProcurementHuman ResourcesEnterpriseServicesInformationTechnology (IT)Copyright © 2012 Accenture All rights reserved.10


How a leading life science company started its journeyto value-driven BPMBPM OperationsBPM Maturityand Value AnalysisProcessValue AnalysisRoadmapGovernanceBPM Methods & ToolsBPM DeliveryBPM TransformationBusinessArchitectureProcessStrategyProcessAnalysisCulture &People Change ManagementStandards &GuidelinesProcessImprovementMethodsProcessDesignProcessImplementationBPMCommunityRepositoryBPM SystemsProcessExecutionProcessMonitoringProgram & ProjectManagementBPM SupportFinanceProcurementHuman ResourcesEnterpriseServicesInformationTechnology (IT)Copyright © 2012 Accenture All rights reserved.11


Content• Value of business process management (BPM)• Value-driven BPM – a powerful management discipline• Value-driven BPM - establishing the capability* 2010 Accenture/Gartner “Process Based Advantage” Research (US, UK, Germany)Copyright © 2012 Accenture All rights reserved.12


Core work packages to establish BPMBPM-L GovernanceBPM-L StrategyBPM-L Modeling &RepositoriesProcess of Process ManagementBPM-L ManagedServicesBPM-L PerformanceMonitoringCopyright © 2012 Accenture All rights reserved.BPM-Automation13


Strategy for Value-driven BPM:High impact, low maturity processes will be thetop priorities of a transformation roadmap.PrioritizingProcessAligningGovernanceDesigningCapabilitiesWhich processes are most important –High impact?Which of those high impact processes havea low maturity compared to the industry?How do we touch those processes andAnd how do they align with our operating model?What process management capabilities arein place, and which ones do we haveto build?Where are theopportunities?What is thesize and theprize?What is themagnitude ofpotentialchange?How do weget there?Copyright © 2012 Accenture All rights reserved.14


BPM Governance and the appropriate organization aremain enablers of lasting valueCentralised2011DecentralisedHybridChief Process Officer (CPO) drives success• Systematic way to transferstrategy into execution –“Process” is the critical link• Processes - key to achievelasting competitive advantage• Mastering of processes toachieve agility and efficiency• Measure resultsCopyright © 2012 Accenture All rights reserved. 15


Value-driven approach to process repositoriesProcess RepositoryStrategyProcess RepositoryContentFormatValue:“Go-To-Market”EnterpriseProcessMap Level 1Main ProcessesProcessesSub ProcessesTasksLevel 2Level 3Level 4Level 5Tool/UsabilityGovernanceBusiness ProcessRepositoryCopyright © 2012 Accenture All rights reserved.16


Process simulation – an important usage scenario forprocess models and repositories1 – Analyze, Document, &Validate As-Is Process4 – Run Simulations (As-Is & To-Be models)3 – Develop To-BeScenarios, CreateHypothesis, and PrepareSimulation Model5 – Analyze Simulation Results (utilization,throughput rates, what-if analysis, etc.)2 – Collect & Analyze Data (historical data, reports, interviews, etc.)Copyright © 2012 Accenture All rights reserved.17


User InterfaceBPELBPELBPELValue-driven BPM enables the business benefits fromprocess automationProcess Reference Models Metrics and BenchmarksTools & GovernanceProcess ModelsBusinessProcessRepositoryBusiness Infrastructure Process / Middle Automation ware Engine Platforms (Integration Technology)OrchestrationIntegration(EAI)Services (Applications)ServiceRepositoryApplication Component(SAP, Oracle, etc.)Service 2Service 3Service 4AService 4BReference Models for “Process Components”Copyright © 2012 Accenture All rights reserved.18


Process Performance Monitoring:What is it? Why do we need it?To measure risks and identify issues inexecuting processesOrder Prepare Deliver Invoice PaymentTheoretical processActual (measured) processTo discover existingprocessesUnderstand how theyare really executedIdentify bottlenecksand improvementpotentialCopyright © 2012 Accenture All rights reserved. 19


More and more organizations handle components of theirProcess of Process management throughBPM Managed Services•Repository Administration Set up Ongoing management• Creation and Handling ofProcess Models Modeling Model conversation Quality insurance• BPM Center of Excellence Support Training Monitoring Development of Policies and GuidelinesCopyright © 2012 Accenture All rights reserved.


10 Tips for Success of Value-driven BPM1. Get Top Management support – Value-driven BPM is a “CEO Topic”2. Focus on achieving quick creation of value to establish credibility forBPM.3. Focus on what is important, don’t try to “boil the ocean”.4. Keep things simple.5. Build processes “to change” - where it makes sense6. Treat BPM as management discipline, not just as technical exercise.7. Pay a lot of attention to the people side of BPM.8. Define process and client centric KPIs to measure success.9. Adapt compensation and reward systems to the new BPM discipline.10.Encourage creativity and innovation instead of punishing failure.Copyright © 2012 Accenture All rights reserved.21


Questions and Answers………Copyright © 2012 Accenture All rights reserved.mathias.kirchmer@accenture.com

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